Lydian Energy has secured $689M to support the development of solar and battery projects across three U.S. states. The funding will finance two solar power projects and one battery storage project. Japan-based MUFG and CIBC are the main financial partners for the massive project. The financial package also includes a construction-to-term loan, a co-investment bridge loan, a tax credit bridge loan and a letter of credit facility.

It will be used for the AC Ranch 1 solar project in New Mexico and the Yellow Viking Facility in Texas. On the other hand, the Faraday BESS (battery energy storage system) in Utah. The AC Ranch 1 is a 75MW-alternating current (MWac)/100MW-direct current (MWdc) solar photovoltaic installation. It operates under a busbar power purchase agreement (PPA) with an investment-grade buyer. Operating within ERCOT’s Oncor territory, Yellow Viking is a 170MWac/210MWdc solar project with 100MW contracted through a PPA. Faraday BESS Phase 1 is planned as a 150MW/733 megawatt-hour battery storage facility supported by a long-term agreement with an investment-grade counterparty. MUFG is financing various energy projects across the United States such as the BrightNight pioneer clean energy center in Yuma County.

Official Word on the Lydian Energy Solar and Battery Projects

Officials from Lydian Energy, such as CEO Emre Ersenkal have noted their remarks on the solar and battery projects development. “This transaction marks a major milestone for Lydian Energy, as it is the first full-stack financing we have closed, and it is especially notable to do so with industry-leading lenders MUFG and CIBC,” Emre noted. Furthermore, he noted that the company is excited about the significance of the financing which creates a strong precedent for future investments. He also noted that it unlocks capital to support continued growth.

The company currently manages a portfolio comprising 18 solar and energy storage projects with a combined capacity of 4.4GW. It also works with financial institutions, regulatory bodies and local communities to implement infrastructure that meets specific regional requirements and policy targets. Board chair Chris Moakley said: “We are proud that these financings are helping meet the need for reliable, sustainable and affordable domestic energy. We are also very grateful for the commitment of MUFG, CIBC and other participating lenders. We are pleased to support Lydian’s talented team as they build these much-needed solar and battery storage projects.”

Project Factsheet

• Project Name: Lydian Energy Solar and BESS Portfolio.
• Type: Solar P V and battery energy storage facilities.
• Location: Texas, New Mexico, and Utah, USA.
• Total Financing: $689 million
• Financiers: MUFG and CIBC
• Developer: Lydian Energy

Key Components

• AC Ranch 1 Solar Project- 75MWac /100MWdc (New Mexico)
• Yellow Viking Solar Project- 170MWac 210MWdc (Texas, ERCOT Oncor territory)
• Faraday BESS Phase 1 FB – 150MW / 733MWh battery storage (Utah)

Financing Structure

• Construction-to-term loan
• Co-investment bridge loan
• Tax credit bridge loan
• Letter of credit facility

Power Offtake

• AC Ranch 1 under busbar PPA with investor grade buyer.
• Yellow Viking: 100MW acquired through PPA.
• Faraday BESS supported by long-term counterparty on investment grade.

Portfolio Context

• Lydian Energy portfolio: 18 storage and solar projects.
• Combined capacity: 4.4GW

Project Purpose

• Increase the capacity of solar generation.
• Include grid-scale battery storage (733MWh)
• Favorable and sustainable supply of domestic energy.