MMA loans

Project financing case: Signal Iduna acquires a 650 MW solar project in Germany

Of: Mercom Capital Group

Signal Iduna and its financial subsidiary HANSAINVEST Real Assets acquired the 650 MW Witznitz solar project in Lake Hainer near Leipzig, Germany. The project is subject to planning permission. Moveon Energy is developing the project and plans to install over 1.1 million solar modules. The construction work is expected to be completed by the second quarter of 2023. Moveon Energy will take over the operational management of the project and will operate 45 MW of it in its portfolio. The energy produced will be available to industrial and large customers without state subsidies using long-term power purchase agreements.

Sonnedix, an independent solar power producer, has completed the transfer of ownership of its South African activities to BTE Renewables, a wind and solar power producer, backed by global infrastructure investor Actis. The transaction includes the sale of Sonnedix Africa’s wholly owned subsidiary, Sonnedix Solar South Africa. Sonnedix Solar South Africa holds a 60% stake in Mulilo Sonnedix Prieska PV (RF) Proprietary Limited, which owns the solar photovoltaic project in the Prieska region of the Northern Cape Province, South Africa, with a contracted capacity of 75 MW. Sonnedix Solar South Africa also manages the Prieska project through a management services agreement on behalf of the shareholders.

Summit Ridge Energy, owner and operator of community solar assets secured Funding of $15 million for the construction of two lithium-ion battery energy storage system (BESS) projects totaling 31 MWh at Staten Island, New York. Fundamental Renewables, formerly MMA Energy Capital, provided the financing through two loans. To date, Fundamental Renewables has provided over $765 million in financing to Summit Ridge through multiple construction, development and equipment loans. BESS projects have received a global incentive under NYSERDA’s Retail Energy Storage Incentive Program and will operate under New York’s Distributed Energy Resource Value Tariff.

Torrent Power announcement the finalization of its acquisition of the ad hoc vehicle (SPV) operating a 50 MW solar power plant in the state of Telangana. The acquisition of 100% of the securities of the SPV pursuant to the securities purchase agreement with SkyPower Southeast Asia III Investments and SkyPower Southeast Asia Holdings 2 (the sellers) and Sunshakti Solar Power Projects (SPV). The long-term power purchase agreement for the project is with Northern Power Distribution Company of Telangana for 25 years at a fixed tariff of approximately ₹5.35 (~$0.069)/kWh, with a duration of remaining useful life of approximately 20 years. The enterprise value of this acquisition is approximately ₹4.16 billion (~$53.28 million).

Australian renewable energy company, Edify Energy, announcement the finalization of the financing of the project to build and operate a 150 MW/300 MWh battery energy storage system, located in the southwest of New South Wales. The project comprises three separate partitions: 60 MW/120 MWh Riverina Energy Storage System 1 (RESS 1); 65 MW/130 MW Riverina Energy Storage System 2 (RESS 2); and 25 MW/50 MWh Darlington Point Energy Storage System (DPESS). The Commonwealth Bank of Australia (CBA), Westpac and DNB provided long-term syndicated debt financing.

American Solar Fund (USF), a fund for renewable energies, announcement the financial close of its option to acquire an additional 25% interest (tranche 2) in the 200 MW Mount Signal 2 (MS2) solar project. The acquisition brings USF’s total ownership in MS2 to 50% or 100 MW and was financed with available cash. USF’s portfolio now includes 42 fully operational assets with a combined capacity of 543 MW across five US states. The acquisition increases the weighted average term of USF’s investment-grade power purchase agreements (PPAs) from 14.1 years to 14.5 years and further improves geographic diversification.

A2Aan Italian company, completed the acquisition of the wind and solar portfolios of Ardian, in accordance with the agreements entered into on January 22, 2022. A2A acquired stakes in 3New&Partners, Daunia Calvello and Daunia Serracapriola, companies comprising a portfolio of wind projects in Italy with a total capacity of 335 MW (196 MW pro rata to Ardian’s stake) for 265 million euros ( ~$283.7 million). A2A also acquired a complementary portfolio, 4New, composed of wind and solar projects for an overall capacity of 157 MW, of which 117 MW is located in Italy and the remaining 40 MW in Spain, for an equity value of €187 million ( ~$200.2 million). The wind projects covered by the agreements between A2A and Ardian are located in Sardinia, Puglia, Campania and the Spanish region of Catalonia, while the solar projects are located in Puglia, Lazio and the Spanish region of Andalusia .

China the state-owned China Three Gorges has agreed purchase a portfolio of solar photovoltaic projects in Spain worth approximately 200 million (~$214.52 million) from the Nextwell Group, a fund with renewable energy assets, Spanish newspaper Expansion cited unidentified market sources. China Three Georges entered Spain in August 2020 when it announced the acquisition of 13 Spanish solar projects built by Madrid-based renewable energy company X-Elio.

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