Latham & Watkins Advises Terra-Gen on North America’s Largest Standalone Solar and Energy Storage Project

Terra Gen, a leading renewable energy developer and operator, has announced that it has completed the financing on the initial phase of its Edwards Sanborn Solar Storage facility in Kern County, CA, a project that will produce clean energy for more than 158,000 homes and displace more than 307,000 tons of CO2 annually. The Edwards Sanborn Solar Storage facility is composed of 346 MWac (megawatts, alternating current) of solar modules and 1,501 MWh (megawatt hours) of battery storage. It is the largest single solar and battery energy storage project to reach this milestone to date.

Financing for the project includes US$804 million senior secured credit facilities comprising a US$400 million construction and term loan facility, a US$328 million tax equity bridge facility, and a US$76 million construction and revolving letter of credit facility.

Expected to be completed in 2022, the project will play a critical role in balancing the power grid with substantial renewable sources to provide system stability, as well as meet California’s decarbonization goals, and pave the way for our clean energy future.

Latham & Watkins LLP represents Terra-Gen in the transaction. The debt financing team was led by New York partner Warren Lilien and San Diego partner Omar Nazif, with New York associates Jiyeon Chun, Lauren Lozada and Aan Amin. The tax equity financing team was led by New York partners Kelly Cataldo and Eli Katz, with New York associates Kailash Gupta and Deborah Ogali. Advice was also provided on tax matters by Houston partner Jim Cole, with Washington, D.C. associate Ben Cheatham.