Pacifico Energy Group, through its US-focused renewable power development, energy services and financing subsidiary, Pacifico Power (“Pacifico”), has partnered with Sumitomo Corporation, through Sumitomo Corporation of Americas (“SCOA”), to finance a portfolio of solar photovoltaic (PV) plus battery energy storage system (BESS) projects.
Pacifico secured $40 million in project tax equity funding from SCOA for a portfolio totaling 27 MW of solar PV and 25 MWh of battery storage located in California and Massachusetts. The projects will provide customers an estimated cost savings of more than $46 million over the course of the portfolio’s useful lifetime.
SCOA will act as a tax equity partner, while Pacifico will remain a sponsor owner and operator of the projects. This will be SCOA’s first investment in distributed generation and signals the group’s continued commitment to renewable energy resources across the US. The projects were developed and constructed by Pacifico Power with commercial operation expected by year end 2024.
This follows the successful close of a $29 million deal with Mitsubishi UFJ Financial Group (“MUFG”) for a construction-to-permanent debt facility and $24 million transferability bridge loan for the portfolio in January 2024 – for a total transaction value of $93 million. The transaction marks Pacifico’s first to leverage the transferability provisions of the Inflation Reduction Act allowing monetization of the projects’ investment tax credits, as well as one of the first such transactions in the industry.
“We’re pleased to announce Pacifico’s latest financing partnerships with Sumitomo and MUFG as we continue to accelerate deployment of clean energy infrastructure nationwide,” stated Kevin Pratt, President of Pacifico Power. “As one of the first participants to close a transferability bridge loan under the IRA and a tax equity vehicle of this nature, we’re excited to build on the momentum that Pacifico is experiencing within clean energy.”
Visit www.pacificopower.com to read the full release.
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