Earthrise Energy has raised $630 million for its Gibson Solar Project in Illinois, US
The transaction will support the shared point of interconnection between the project and the company’s existing thermal power plant
Earthrise says this approach enables faster operational status for renewable energy assets
Independent power producer (IPP) Earthrise Energy has achieved financial close on a $630 million tax equity and debt financing for a 270 MW AC Gibson City Solar Project in Illinois, US.
Earthrise called it a first-of-its-kind transaction since it involves the shared point of interconnection between its solar project and the company’s existing thermal power plant, using surplus interconnection service.
Interconnection is a major challenge in the US, as, according to Lawrence Berkeley National Laboratory, there was 667 GW of hybrid capacity in interconnection queues at the end of 2023, with 92% representing solar and storage assets (see 667 GW Hybrid Project Capacity In US Interconnection Queues At 2023-End).
Earthrise tackles this challenge by repurposing legacy fossil fuel transmission infrastructure for renewable energy development projects. This enables the renewable energy assets to become operational faster than a typical greenfield project in this space, it says.
“As the industry aims to build a more sustainable future while serving increasing power demand, it is essential to embrace a comprehensive approach that leverages existing infrastructure to advance clean energy expansion,” said the Global Co-Head of Investment Banking, Marathon Capital, Ari Pribadi.
Gibson Solar Project comprises 2x135 MW solar projects in McLean and Ford Counties of Illinois. Both sub-projects are under construction and are planned to come online in 2026.
“This transaction marks a pivotal achievement in delivering utility-scale solar solutions to the grid backed by a differentiated project development strategy, robust financial innovation, and operational discipline,” stated Earthrise Energy CFO Jeff Hunter.
For this debt financing, BBVA, Intesa Sanpaolo, and Nord/LB served as coordinating lead arrangers and bookrunners, while an unnamed Fortune 500 telecommunications company provided tax equity commitment.
Earthrise’s current project portfolio comprises 1.7 GW of gas-fired generation capacity and more than 1.7 GW of solar development pipeline.