EDF Renewables, Power Sustainable secure financing for Desert Quartzite solar-plus-storage project

Why has EDF Renewables revived project finance for Desert Quartzite after a decade?

EDF Renewables North America, in partnership with Power Sustainable Energy Infrastructure Inc., has secured long-term financing for the Desert Quartzite Solar+Storage Project in California, marking its first U.S. project finance deal in over a decade. This milestone reflects EDF Renewables’ evolving capital strategy and underscores international lender confidence in hybrid renewable infrastructure.

The financing syndicate was led by KfW IPEX-Bank, with participation from MUFG Bank Ltd, Export Development Canada, Korea Development Bank, and four other financial institutions. The successful close supports EDF Renewables’ strategy of delivering integrated solar and battery storage projects at scale. The Desert Quartzite project reached operational status in December 2024 and is currently delivering energy to Clean Power Alliance under a 20-year power purchase agreement (PPA).

The structure of this deal may influence future hybrid project financing across North America, particularly as utilities seek more resilient and dispatchable clean energy sources.

How does Desert Quartzite Solar+Storage support California’s energy transition goals?

Located on federal lands in Riverside County administered by the Bureau of Land Management, the Desert Quartzite Solar+Storage Project integrates 375 MWdc of solar generation with 150 MWac of four-hour battery energy storage. The hybrid design ensures that solar energy generated during peak production hours is stored and then dispatched during demand spikes, stabilizing grid operations and offsetting fossil-fuel use during evenings.

The project’s output is sold to Clean Power Alliance (CPA), a community choice aggregator serving more than 30 jurisdictions across Southern California. By securing this 20-year PPA, EDF Renewables and PSEI have ensured the long-term economic viability of the facility while providing CPA with a predictable supply of renewable power that contributes to California’s clean energy targets.

As the state advances toward its net-zero emissions goal by 2045, such hybrid projects are central to delivering grid reliability, price stability, and carbon emissions reductions.

What is the environmental impact of the Desert Quartzite project?

The Desert Quartzite project is designed to generate enough clean electricity to power approximately 163,000 California homes annually. This is projected to offset over 669,000 metric tons of CO₂ emissions each year—equivalent to removing 145,000 gasoline-powered vehicles from roads. These estimates highlight the project’s vital contribution to the state’s climate strategy.

California remains among the most aggressive states in the U.S. in pursuing renewable energy adoption, with more than 33% of its electricity coming from renewables as of 2024. The addition of battery storage in Desert Quartzite enables solar power to compete with conventional dispatchable energy sources, enhancing its role in baseload supply and reducing reliance on carbon-intensive peaker plants.

By integrating solar and storage, the project also improves grid resilience during extreme weather events, which have increasingly affected California’s power supply due to climate change.

What does this project reveal about the future of solar-plus-storage development in the U.S.?

Desert Quartzite represents a growing trend in the U.S. renewable energy market—hybrid projects that combine generation with storage to offer more flexible, grid-friendly solutions. With battery storage now economically viable and incentivized through federal programs like the Inflation Reduction Act, developers are increasingly bundling storage into new utility-scale solar projects.

EDF Renewables’ return to U.S. project financing after over a decade signals a renewed appetite for asset-backed debt models as market conditions mature. Earlier, the company had relied more heavily on corporate balance sheet financing or divestment of operational assets. The project’s successful financing also reflects lenders’ comfort with long-term contracted revenue streams from entities like Clean Power Alliance.

International financiers’ involvement—such as Export Development Canada and Korea Development Bank—highlights global interest in U.S. energy infrastructure, particularly where climate-aligned and backed by predictable offtake arrangements.

How are federal and local agencies involved in facilitating this project?

Because Desert Quartzite is sited on federal land, it required approval from the Bureau of Land Management (BLM) under the Western Solar Plan. This initiative aims to streamline utility-scale solar development in environmentally appropriate zones across six southwestern states. BLM granted a right-of-way for the project after evaluating its environmental and cultural impact, engaging with stakeholders including Indigenous tribes, conservation groups, and local agencies.

The permitting and environmental compliance process has become more rigorous over the past decade, as demand for land for renewable projects intersects with biodiversity and heritage preservation. Riverside County is among the most active regions for solar energy in California, supported by favorable solar irradiance, access to transmission infrastructure, and state-level policy incentives.

What strategic goals does Desert Quartzite fulfil for EDF Renewables and Power Sustainable?

For EDF Renewables, Desert Quartzite expands its portfolio of grid-scale hybrid assets and reinforces its position in the U.S. energy transition. The company has been growing its presence in battery storage, electric vehicle infrastructure, and decarbonisation technologies. Its long-term strategy is to evolve into a full-service provider of energy transition solutions across generation, storage, and smart grid services.

Power Sustainable Energy Infrastructure Inc., part of Power Corporation of Canada, brings a long-term institutional capital perspective. Its involvement aligns with the broader trend of pension-backed and infrastructure-focused investors moving into clean energy assets with long-term contracted revenues and sustainability credentials.

Desert Quartzite supports PSEI’s strategy of acquiring resilient, scalable infrastructure assets with a high degree of environmental impact and return visibility. For both companies, the project also enhances ESG performance metrics and aligns with investor demand for low-carbon investment opportunities.

What does the stock market say about EDF and Power Corporation’s clean energy strategies?

Electricité de France S.A. (EDF), the parent company of EDF Renewables North America, is traded on Euronext Paris under the ticker EDF. The company’s stock has remained steady over the past year, currently trading near €12.00. EDF reported €118.7 billion in consolidated sales in 2024, with nearly 94% of its investments aligned with its net-zero transition strategy. The company’s financial health and strong commitment to the energy transition suggest a stable medium-term outlook.

Sentiment: Hold. Analysts regard EDF as a steady, low-volatility investment, especially for ESG-focused portfolios. However, the flat stock trajectory implies limited near-term upside unless supported by additional catalysts such as new contract wins or regulatory reforms in Europe.

Power Corporation of Canada, the parent of Power Sustainable, is listed on the Toronto Stock Exchange under ticker POW. While PSEI itself is private, Power Corporation is expanding aggressively into the sustainability segment. It recently closed $800 million in commitments for its energy infrastructure partnership, indicating growing institutional support for clean energy plays.

Sentiment: Buy. Power Corporation is viewed favorably by investors seeking exposure to sustainable infrastructure. Its diversified portfolio, long-term vision, and growing emphasis on renewables make it a strong bet for those aligned with the clean energy transition.