Longroad Energy achieves Sun Pond financial close

The output of the Sun Pond project will be purchased by the City of San Jose, California, and Ava Community Energy via long-term power purchase agreements (PPAs). The project will generate enough electricity to power approximately 35 000 average American homes.

“With the financial close and commencement of construction of Sun Pond, Longroad has achieved more than 970 MW of financed and under-construction solar projects in Maricopa County representing US$2 billion in investment,” said Paul Gaynor, CEO of Longroad Energy. “The project exemplifies our commitment to delivering meaningful benefits to energy buyers and communities. We are providing customers with clean, affordable renewable energy to support grid reliability, while contributing to the local economy where our projects our sited, including US$30 million in revenue for public schools and local jurisdictions through lease and tax payments, as well as supporting family-sustaining jobs.”

Sun Pond represents the continuation of a longstanding partnership between Arizona-headquartered solar manufacturer First Solar, Inc. and Longroad. Sun Pond is the fifth Arizona project using First Solar’s uniquely American photovoltaic solar technology that Longroad has financed in the past four years.

“We are thrilled that our relationship with Longroad continues to grow in strength and that our modules will not simply power Sun Pond, but the communities it will serve,” said Georges Antoun, Chief Commercial Officer, First Solar. “As America’s solar company, we are proud of our technology’s role in delivering cost-competitive electricity to support our nation’s economic growth, and energy security.”

Debt financing was led by US Bancorp Impact Finance and included Commerzbank AG and CIBC. US Bancorp Impact Finance acted as Coordinating Lead Arranger, Administrative Agent, Collateral Agent, and Depositary. CIBC acted as Joint Lead Arranger and Green Loan Coordinator. US Bancorp Impact Finance is also the project’s tax equity investor.

“US Bancorp Impact Finance is dedicated to creating a sustainable future and we are thrilled to finance Sun Pond and continue expanding access to renewable energy in Arizona,” said US Bancorp Impact Finance Managing Director of Environmental Finance Darren Van’t Hof. “Our team’s ability to offer tax equity financing solutions in addition to leading the project finance debt is a testament to US Bank’s ability to provide custom financing solutions for our clients like Longroad. Sun Pond is one of several Longroad projects we’ve financed and each one is a great example of how our team collaborated internally to bring multiple assets of US Bank together to meet Longroad’s needs.”

McCarthy Building Companies (McCarthy) is the engineering, procurement and construction (EPC) contractor on Sun Pond. Sun Pond is expected to employ over 200 people during the construction process. McCarthy is utilising registered apprentices and will be paying prevailing wage to all workers on the project, in accordance with the Inflation Reduction Act (IRA).

“Building solar projects allows us to further develop Arizona’s solar workforce while also investing in our nation’s diverse energy infrastructure,” said Chris Fletcher, McCarthy Vice President of Operations. “We are thrilled to be part of another major solar energy and storage project with Longroad Energy in Arizona and for the economic opportunities it provides our community.”

The Sun Pond 85 MW/340 MWh battery energy storage system (BESS) will be provided by US-based energy storage platform provider Fluence. The BESS will include US-made inverters from EPC power. BESS cells from AESC will be integrated into the Fluence Gridstack system. Longroad, in conjunction with Fluence and NovaSource Power Services, will provide long-term operations and maintenance services for the BESS.

“Employing a proven and reliable Fluence energy storage platform, including an advanced asset management analytics tool, Longroad is investing in leading technologies at its 340 MWh Sun Pond project,” added John Zahurancik, Fluence President, Americas. “This new system will provide clean, cost-effective power and firm, flexible capacity to a rapidly modernizing grid. With more than 7 GWh of battery storage systems operating in the US alone, our Gridstack product line is one of the most widely used systems for communities across the country.”

Nextracker is supplying trackers for the project and Sungrow is supplying the solar inverters. Comprehensive operations and maintenance services for the project will be provided by NovaSource Power Services and Longroad’s affiliate Longroad Energy Services.

Longroad Sun Streams Complex

Sun Pond is part of the Longroad Sun Streams Complex which is currently comprised of three additional projects. With Sun Pond, the Complex will total 973 MW of solar and 600 MW/2400 MWh storage.

• Sun Streams 2 – 200 MW solar project. Operational since mid-2021.
• Sun Streams 3 – 285 MW solar and 215 MW/860 MWh storage project. Commercial operations commenced mid-2024.
• Sun Streams 4 – 377 MW solar and 300 MW/1200 MWh storage project. Sun Streams 4 is Longroad’s largest project to date. It reached its peak construction milestone in 2024 with commercial operations expected by mid-2025.

Environment and community

Sun Pond represents over 145 000 tpy of avoided CO₂ emissions. Over the project’s useful life, Sun Pond will contribute more than US$30 million in revenue for Arizona schools and communities through its long-term lease with the Arizona State Land Department and tax remittances. Longroad extends its thanks to staff and officials from Maricopa County, and the Arizona State Land Department for their continued collaboration during development and construction of the project.

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