Quinbrook Closes Financing and Tax Equity on 300MW Wind Farm in Texas

Written By: Jen Neville
January 22, 2019

wind proxy revenue swap

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windThe Wind Power Finance & Investment Summit is widely recognized as the leading gathering place for wind industry deal makers, or as one past event attendee called it – “the highest quality of industry participants on the conference circuit. Our readers get 10% off attendee registration using code ICNEWS10 at checkout. View the agenda here. 

Carl Fleming, Counsel at AKIN GUMP STRAUSS HAUER & FELD LLP will be moderating Panel Discussion: Delivering on the 2020 Push

The wind industry is marshaling all its resources to deliver projects by the end of 2020—the most important year in the industry’s history. AWEA reports that the pipeline of wind farms under construction or in advanced development exceeds 33GW. Can the industry get it done? How? This session will explore these questions and assess the challenges and the strategies to overcome them in the race to deliver on the 2020 push.

 What strategies are being used for 100% PTC qualification?
 How are developers managing the risks in continuous construction and transformer strategies?
 How are developers managing the risks of getting projects through long interconnection queues?
 Will there be enough demand for the pipeline of projects to find contracts?
 What are the strategies for preserving projects?
 Is there an imbalance between 100% PTC safe harbor turbines and projects? If so, what are the opportunities for partnering?
 How much 100% PTC qualified wind will be built by 2020?

Dan Lynch, Counsel, AKIN GUMP STRAUSS HAUER & FELD LLP will be moderating Panel Discussion: Wind + Storage: Where are the Opportunities and Why?

There is a growing interest in the opportunities for wind + storage and more RFPs are asking for wind + storage bids. So, what is the future of wind + storage, how significant will it become and how quickly is the market going to grow? This session will address these questions and consider the following:

 What are the different strategies for deploying wind + storage?
 What is the range of product offerings and value streams that might be compensated and get traction in the market?
 What does the storage cost curve and wind + storage economics look like?
 What is financeable and what are the financing structures?
 Will wind + storage become a requirement in the future?

Quinbrook Infrastructure Partners, a specialist investor in low carbon energy infrastructure, recently announced that its portfolio company, Scout Clean Energy LLC has closed construction financing and tax equity commitments on the 300MW Ranchero Wind Farm located in Crockett County, Texas.

The Ranchero project is expected to be operational by year-end 2019 and has been developed from inception by the Scout team. Ranchero will utilize 120 of the latest generation GE 2.5MW wind turbines with 127m rotors and has secured a 10-year Proxy Revenue Swap with Allianz Global & Specialty, Inc.'s Alternative Risk Transfer unit, in partnership with Nephila Climate. REsurety provided the risk analytics supporting the PRS transaction and will serve as the calculation agent on an ongoing basis. Construction financing, including letters of credit, is being provided by KeyBank. GE Energy Financial Services underwrote and committed a portion of the tax equity.

Scout has entered into a fixed price balance of plant construction agreement with RES Americas, with construction management to be undertaken by Harvest Energy Services, a Scout affiliate.

David Scaysbrook, co-founder and Managing Partner of Quinbrook, stated: "It is especially pleasing to have closed a major new financing and commenced construction of the first project to be developed from scratch by the Scout team. Ranchero has the potential to be a significant new wind project for the Texas power market and enjoys a strong wind resource. Securing Allianz as Ranchero's offtake partner supports our view of the quality of the project and its compelling wind resource fundamentals. Including the 200MW Persimmon Creek wind farm recently completed and already operational, Scout's operating portfolio is targeted to exceed 1GW within the next 18 months and is well on the way to exceeding our 2GW growth target by 2021."

"Quinbrook and the Scout team are pleased to have closed and launched construction of another utility-scale wind project with distinguished partners and the opportunity to employ new financing and off-take structures in the Ranchero transaction. We believe Ranchero is an exceptional wind project and the transaction has attracted several high-quality partners in GE Renewable Energy, GE EFS and KeyBank," added Jeff Hunter, Senior Managing Director of Quinbrook. "This year we expect to close and commence construction on several additional wind projects in the Scout portfolio which are located across a diverse spectrum of US power markets."

Together, Quinbrook and Scout have rapidly expanded their utility-scale US wind project portfolio to over 2.3GW of potential renewable power capacity, spanning 13 projects in 10 states.

Quinbrook and Scout were advised by Akin Gump Strauss Hauer & Feld LLP and Paragon Energy Advisors.

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