Enlight Renewable Energy, a global renewable energy developer, has successfully secured financing for the energy storage component of its flagship Atrisco Solar and Energy Storage project, situated near Albuquerque, New Mexico.
Financial Close for Complete Project
The company had previously achieved financial close on the Atrisco Solar project in December 2023. This latest development, securing financing for the energy storage aspect, completes the financial and tax equity arrangements for the entire Atrisco project.
The project is poised to contribute significantly to New Mexico’s goal of reaching 2 GW/7 GWh of utility-scale battery energy storage system (BESS) capacity by 2034.
Project Details and Financing
The Atrisco complex integrates 364 MW of solar generation capacity with 1.2 GWh of battery storage. With a total cost of $827 million, the project’s financing comprises $290 million in term debt and $420 million in tax equity (accounting for 86% of the total cost).
Enlight’s long-term equity investment amounts to $117 million (14% of the total cost). This project marks the largest endeavor undertaken by Enlight to date and is currently in the commissioning phase, progressing towards partial commercial operation, with full commercial operation expected later this year.
Energy Storage Financing Details
As part of the financial close, Enlight, through its subsidiary Clenera Holdings, has secured a $401 million loan agreement with a consortium of eight leading global banks, spearheaded by HSBC.
This loan is intended to finance the construction of the Atrisco Energy Storage component.
Upon the project’s commercial operation date (COD), the loan will convert into a $185 million term loan from the same group of lenders, supplemented by $222 million in tax equity financing provided by U.S. Bancorp Impact Finance.
The term loan is structured with a 20-year underlying amortization profile and a 5-year mini-perm, subject to an all-in interest rate (fixed base + margin) ranging from 5.6% to 5.9%.
Solar Project Financing and Tax Equity Benefits
The Atrisco Solar project was financed by a consortium of prominent global banks led by HSBC, with tax equity provided by Bank of America.
Notably, the project’s tax equity financing qualified for the Energy Community IRA adder due to a brownfield addition.
Equity Recycling for Future Growth
In conjunction with the financing of the Atrisco Energy Storage project, Enlight anticipates recycling $234 million of equity back into its balance sheet. The company has indicated that these funds will be utilized to fuel future growth initiatives.