Matrix Renewables secures $92 million for 80 MWh co-located storage in California

Matrix Renewables, the platform backed by private equity firm TPG, has secured US$92 million in tax equity financing for two solar-plus-storage projects in California with 80 MWh of energy storage.

Tax-share financing is provided by Bank of America, first covered by Energy-Storage.newssister site PV technology. Tax-equity financing refers to an investment by a passive equity investor that seeks to earn an internal rate of return (IRR) based primarily on the U.S. federal tax benefits of a particular asset class, in this case renewable energy.

The funding is going to the Gaskell West 2 and 3 projects in Kern County, California, which are expected to be commissioned in late 2022. They total 143 MWdc of solar PV with 80 MWh of lithium iron battery energy storage system phosphate (LFP) (BESS). ) ability.

Both projects hold five long-term power purchase agreements with California utilities and cities, Matrix said.

Most energy storage projects in California generate revenue through PPAs, particularly long-term electricity supply agreements with investor-owned utilities and Community Choice Aggregators (CCAs), as well only wholesale energy and a small amount of auxiliary networks. services.

Martrix last month acquired the Gaskell West 2 and 3 projects from Recurrent Energy, the development arm of another major module maker Canadian Solar. Recurrent Energy sold Gaskell West 1 to developer Southern Power in 2018.

Canadian Solar’s subsidiary, CSI solar, will provide a turnkey battery storage solution, including supply, installation and commissioning of the system.

The Gaskell sites are Matrix’s first foray into the US market, having previously focused on Europe, primarily Spain and Italy, and South America. It is also its second major project announced with a storage component, after committing to invest in three solar sites totaling 150 MW with storage in Huelva, Spain, in February last year.

Madrid-based Matrix Renewables was created in 2020 when TPG, through its impact investment arm The Rise Fund, acquired 1GW of solar PV projects from one of the world’s largest module manufacturers. in the world, Trina Solar. You can read PV technologythe coverage of the case here.

The company was advised on the financing agreement by CohnReznick Capital and Norton Rose Fulbright.

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