Energize Weekly, May 9, 2018
Solar acquisitions and asset-financing deals worth more than $8 billion have already been made in 2018, according to the kWh Analytics Spring DealFlow report.
The solar services and risk management consultant logged 36 projects since the start of 2018, including 17 asset transactions and 19 asset-financing deals. Only 21 projects disclosed the dollar value of the transactions.
The biggest asset transaction was Capital Dynamics’ acquisition of 8point3 Energy Partners LP from SunPower and First Solar for $1.7 billion. The second-largest asset purchase was Global Infrastructure Partners purchase of NRG Yield Inc.’s assets for $1.375 billion.
NextEra Energy also sold 96 megawatts (MW) of wind and solar assets in Ontario to the Canadian Pension Plan Investment Board for $582.3 million plus $689 million in assumed debt.
Among the largest reported asset-financing deals was Wells Fargo providing $49 million in tax equity to Origis Energy for a large-scale solar project in Sumrall, Miss.
Sunlight Financial, a provider of financing for residential solar systems, funded $225 million to Hudson Clean Energy Partners for 9,000 residential projects.
In a private placement of bonds secured by 565 MW of utility-scale wind and solar, independent power producer sPower raised $421.4 million.
“This financing will benefit sPower for years to come by locking in predictable cash flows for almost two more decades,” sPower CEO Ryan Creamer said in a statement.
The Rural Energy for America Program (REAP) announced $48.2 million in financing for rural areas.
The New York State Energy Research and Development Authority announced $1.4 billion in funding for 22 utility-scale solar farms.
“While some might consider New York State’s projected $1.4 billion from a future 22 projects to be delivered by 2022 a bit far out to be considered on this list, it may be appropriate as the bids are due by October of this year and companies have already spent money on developing at least some of the sites that will land contracts,” kWh Analytics said.
“If solar and wind are going to scale to supply most of the power on the U.S. power grid, they are going to need massive sums of capital. And we are starting to see evidence of that scaling,” kWh Analytics said.
