Origis Energy Secures $344M in Financing for Pioneering Solar and Storage Project
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The innovative financing agreement leverages the transferability option in the IRA to fund Golden Triangle I solar plus storage in Mississippi through construction and long-term operations.
Origis Energy, one of America’s leading renewable energy and decarbonization solution platforms, announced the close of a $344 million construction financing facility and conversion to term loan with MUFG, a leading global financial group, for its Golden Triangle I solar plus battery energy storage project in Lowndes County, Mississippi.
Golden Triangle I, with 200 MWac solar capacity co-located with 200 MWh of energy storage, is one of three Origis Energy renewable energy projects under construction in the state together representing the largest solar plus battery energy storage deployments in Mississippi to date. Construction was announced by Origis Energy earlier this year on the three projects, Golden Triangle I, Golden Triangle II and Optimist, with a total capacity of 550 MWac solar plus 600 MWh of battery energy storage. The projects will deliver clean energy and grid resiliency at competitive rates under Power Purchase Agreements executed between Origis Energy and the Tennessee Valley Authority (TVA).
Golden Triangle I is supported during construction and long-term operation with this loan facility. Once construction is finished the financing will be converted to a long-term instrument covering the 25 year+ operational life of the project.
Additionally, the loan facility structure leverages the transferability provision of the Inflation Reduction Act (IRA) prior to commitments for tax equity financing.
“The MUFG team has been outstanding. They have worked with us to uncover innovative ways to leverage the IRA provisions and ensure the Golden Triangle I project delivers for TVA and its customers as promised,” said Vikas Anand, Chief Operating Officer & Chief Financial Officer, Origis Energy. “Golden Triangle I will power the equivalent of 57,000 homes, deliver grid resiliency and avoid 291,000 metric tons of CO2 each year. These attributes are in addition to the economic benefits the project and portfolio will deliver in the region. We thank MUFG for their support and look forward to delivering the project for TVA.“
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“We are proud to have partnered with Origis on this construction financing facility and conversion to term loan,” said Patrick Klein, Senior Originator on the Project Finance Americas team at MUFG and Golden Triangle I Transaction Lead. “Supporting our clients’ development projects and business goals is one of the tenets of our bank, and we relish the opportunity to come up with creative solutions to their financing needs.“