The largest clean energy infrastructure project in US history, SunZia Transmission and SunZia Wind, is now being built in its entirety thanks to the closing of a $11 billion non-recourse financing deal by Pattern Energy Group LP, a leader in renewable energy and transmission infrastructure. Upon completion, this project will support the historic climate and clean energy goals of the Biden-Harris administration by delivering up to 4,500 megawatts of energy, mostly from renewable sources, from New Mexico to markets in Arizona and California.
The 550-mile ± 525 kV SunZia Transmission high-voltage direct current (HVDC) transmission line connects south-central Arizona and central New Mexico. It can move 3,000 MW of cheap, clean, and consistent power throughout the Western states. The 3,515 MW SunZia Wind plant, being built over Torrance, Lincoln, and San Miguel Counties in New Mexico, is the largest wind project in the Western Hemisphere. SunZia Transmission will supply clean power produced by this project.
Two 500 kilovolt transmission lines are part of the SunZia Transmission Project, which spans 520 miles of federal, state, and private property between central Arizona and central New Mexico. The approved path begins at a proposed substation in Torrance County, New Mexico, and ends at the Pinal Central Substation, which is currently in operation in Pinal County, Arizona. The project crosses through the following counties: Cochise, Graham, Greenlee, Pima, and Pinal in Arizona; Grant, Hidalgo, Lincoln, Luna, Sierra, Socorro, Torrance, and Valencia in New Mexico. The project will use union labor and tradespeople, and it has committed to the strictest workforce standards.
This revolutionary financing consists of two distinct term facilities, an operational phase letter of credit facility, an inventive tax equity term loan facility, an integrated construction loan and letter of credit facility, and a holding company loan facility.
“Our hope is this successful financing of the largest clean energy infrastructure project in American history serves as an example for other ambitious renewable infrastructure initiatives that are needed to accelerate our transition to a carbon free future,” said Hunter Armistead, CEO of Pattern Energy. “We are very grateful to all of our financial partners who are backing SunZia as part of this record-setting project financing. Construction is well underway on this historic project that will deliver clean power with a generation profile that complements abundant solar generation available across the Western United States. We’d specifically like to thank our shareholders for their support of Pattern’s efforts to deliver this critical project and meaningfully advance the world’s energy transition.”
BNP Paribas, Crédit Agricole Corporate and Investment Bank, CoBank, ACB; Desjardins Group, Export Development Canada, ING Capital LLC, Intesa Sanpaolo S.p.A., New York Branch, KFW IPEX-Bank, MUFG Bank, Ltd., National Bank of Canada, Natixis Corporate & Investment Banking, Societe Generale, Sumitomo Mitsui Banking Corporation, and Wells Fargo Securities, LLC served as the initial organizing lead arrangers and joint bookrunners for the roughly $8.8 billion in construction and term facilities. The coordinating lead arrangers were Banco Bilbao Vizcaya Argentaria, The Bank of Nova Scotia, and Sumitomo Mitsui Trust Bank, Limited, New York Branch.
Co-syndication agents include BNP Paribas, Societe Generale, MUFG Bank, Ltd., Crédit Agricole Corporate and Investment Bank, and Sumitomo Mitsui Banking Corporation. Deutsche Bank Trust and Agency Services is serving as the transaction’s collateral and deposit agent, while MUFG Bank, Ltd. is serving as the administrative agent.
BNP Paribas, Crédit Agricole Corporate and Investment Bank, Desjardins Group, ING Capital LLC, Intesa Sanpaolo S.p.A., New York Branch, National Bank of Canada, Natixis Corporate & Investment Banking, Societe Generale, Sumitomo Mitsui Banking Corporation, and Wells Fargo Securities, LLC served as co-green loan structuring agents for the financings, which are organized as green loan facilities in accordance with the Green Loan Principles.