Primergy Solar rakes in $588m for Ash Creek Solar project with Microsoft partnership

Primergy Solar LLC, a prominent developer, owner, and operator of utility-scale solar and storage projects, announced a milestone achievement in securing $588 million in debt financing for the 408 MWac Ash Creek Solar project located in Hill County, Texas. This financial closure is bolstered by a long-term power purchase agreement (PPA) with tech giant Microsoft, covering the full capacity of the plant, showcasing a significant partnership in the renewable energy sector.

“The successful completion of this financing and a long-term PPA from Microsoft for Ash Creek is a testament to Primergy’s proven ability to creatively develop, finance, build, and operate large-scale renewables projects,” said Ty Daul, CEO of Primergy. This project aligns with Primergy’s mission to invest in well-located projects that offer regional diversity to its portfolio and meet the needs of leading corporate customers like Microsoft.

The Ash Creek Solar project, strategically located near high energy demand areas and existing fossil fuel plants, is expected to generate enough carbon-free energy to power approximately 90,000 homes annually. This initiative marks a significant contribution to the clean energy transition, supported by a consortium of financial institutions led by MUFG Bank, Ltd., and SMBC, alongside seven coordinating lead arrangers.

“We are thrilled to continue our relationship with Primergy and support its growing solar and storage portfolio,” said Louise Pesce from MUFG, highlighting the community impact of projects like Ash Creek Solar. Similarly, SMBC’s Paul Jun emphasized the commitment to advancing clean energy infrastructure development.

Primergy has commenced construction with SOLV Energy as the engineering, procurement, and construction partner, creating around 350 local full-time jobs and ensuring ongoing community benefits through an estimated $100 million in tax payments to Hill County over the project’s lifespan.

“Large-scale solar projects have a ripple effect that strengthens communities,” stated George Hershman, CEO of SOLV Energy, emphasizing the long-term investment in Hill County’s future.

The Ash Creek Solar project represents a landmark in renewable energy financing and partnership between the private sector and renewable energy developers. The collaboration between Primergy Solar LLC and Microsoft not only underlines the growing trend of corporate involvement in renewable energy projects but also highlights the significant economic and environmental benefits that such projects bring to local communities. With the strategic backing of leading financial institutions and a commitment to sustainable development, the Ash Creek Solar project sets a precedent for future utility-scale solar and storage projects globally.