Ecofin US Renewables buys 12 solar projects – Ecofin US Renewables has signed an agreement to buy 12 ground mount solar photovoltaic projects, all at construction stage, with an aggregate asset value of approximately $95m.
The combined capacity of these projects is estimated at 69MW, which will help offset over 83,000 tonnes of CO2 equivalent each year. The projects are expected to commence operations in phases beginning in the first quarter of 2022.
The manager is working with construction and tax equity financing parties to structure these transactions optimally for the benefit of investors. It is expected that the company will invest approximately $25m during the construction phase with potential to increase its equity investment up to approximately $63m during the operating phase through a reduction of gearing.
Completion of this transaction will further diversify the investment portfolio across the states of Minnesota, Virginia, and Delaware through 25-year fixed price power purchase agreements with investment grade utility purchasers. Following the signing of this agreement, the company has now committed or invested approximately 75% of its IPO proceeds.
Pipeline Update
The manager reports that its near-term (6 month) pipeline of potential investment opportunities remains strong and exceeds $3.0bn. The manager is pursuing both wind and additional solar investment opportunities that offer further potential for the portfolio to be fully invested in the coming months.
RNEW : Ecofin US Renewables buys 12 solar projects