Wells Fargo has completed financing packages for two solar power generation facilities in the US.
The first is a US$85mn project financing deal for a large solar project near Fresno in California. The borrower is Sempra Renewables and the funds will help build a 200MW facility in the north of the state, comprising four solar farms, with four separate offtake agreements.
The Sempra Great Valley solar project, as the facility is known, will begin operating commercially in May 2019 and will produce enough electricity to power 90,000 homes.
The four offtake agreements in place are with Marin Clean Energy (100MW), Sacramento Municipal Utility District (60MW), Pacific Gas & Electric (20MW) and Southern California Edison (20MW).
In Florida, meanwhile, the bank has committed US$35mn to the FL Solar 5 project in Orange County. The borrower in this case is Origis Energy, a Miami-based solar energy company. The project will complete by December 2018 and will transmit electricity to Reedy Creek Improvement District of Orange, the offtaker.
Both projects are in line with Wells Fargo’s commitment to invest US$200bn in sustainability by 2030, announced in April this year. The plan states that 50% will go into renewable energy, clean technologies, sustainable transport and green bonds. This follows on from a previous goal, set in 2012, of investing US$30bn in clean technologies by 2020.
A host of commercial banks have made similar commitments in the wake of the Paris Agreement on Climate Change, which was signed in 2015 and which aims to keep the global temperature to below 2 degrees Celsius.
Speaking upon signing the Florida deal, Wells Fargo’s head of independent power and infrastructure, Alok Garg, says Origis Energy is at “the forefront of creating a greener energy future.
He adds: “Wells Fargo is proud to be a part of impactful projects like FL Solar 5 that help our communities accelerate the transition to a lower carbon economy.”