Primergy snags $588M financing for Texas solar project

(Image by StockSnap from Pixabay)

Primergy Solar, a developer, owner, and operator of utility-scale solar and storage projects, announced that it closed commitments for $588 million in debt financing for the 408 MWac Ash Creek Solar project in Hill County, Texas. The company also signed a long-term power purchase agreement with Microsoft for the full capacity of the plant.

“The successful completion of this financing and a long-term PPA from Microsoft for Ash Creek is a testament to Primergy’s proven ability to creatively develop, finance, build, and operate large-scale renewables projects,” said Ty Daul, CEO of Primergy. “Ash Creek aligns with Primergy’s mission to invest in well-located projects that offer regional diversity to our portfolio and serve the needs of leading corporate customers. Our team is extremely grateful for our continued partnership with prominent clean energy project financiers to make this a reality and are proud to work with Microsoft on meeting its sustainability commitments.”

The Ash Creek Solar site is near several existing fossil fuel plants and high energy demand, Primergy said.

The Ash Creek Solar project debt financing includes a construction loan, tax credit transfer bridge loan, and related letters of credit. Primergy has engaged SOLV Energy, a utility-scale solar contractor, as the engineering, procurement, and construction partner, and construction has started.

Ash Creek Solar was originally developed by Orion Power Generation, LLC, a joint venture between Orion Renewable Energy Group LLC and Eolian. Primergy acquired the project in 2021.