JP Morgan, Capital One lend US$260 million for 300MW solar project in Arizona

The project secured a US$414 million construction credit facility earlier this year. Image: Arizona Public Services.

US independent power producer (IPP) BrightNight has secured US$260 million in tax-equity finance from investment banks JP Morgan and Capital One, to aid in the development of a 300MW solar PV power plant in Pinal County, Arizona.

The Box Canyon solar project, jointly owned by BrightNight and Canadian asset manager Cordelio Power, is expected to become operational in the first half of 2025. This will be part of a wider renewable energy portfolio in Arizona totalling 2GW.

Project developer BOCA, which is co-owned by BrightNight and Cordelio, started construction of the Box Canyon solar PV project in December 2023.

BOCA signed a 20-year power purchase agreement (PPA) with the Southwest Public Power Agency (SPAA), an Arizona utility, to sell power generated at the project, which forms part of BrightNight’s 37GW renewable energy portfolio.

BrightNight CEO Maryin Hermann said the project will support Americans by reducing energy bills and boost the local economy through jobs and contracts.

“With over 900,000MWh of projected annual production, the Box Canyon Solar Project is a model of utility-scale renewable power. It will provide reliable, affordable clean energy to local communities, while creating long-term economic benefits, well-paying American jobs, and strengthening the region’s energy security,” Hermann said.

The financing contribution revealed yesterday (14 October) will include deferred contributions. It will add to the previously-announced US$414 million in financing, secured to complete construction and work towards commissioning in the first half of 2025.

Zions Bancorporation, a US bank, was the administrative agent and coordinated the lead arranger for this previous deal. The lead arrangers were the National Bank of Canada, the Royal Bank of Canada, the Canadian Imperial Bank of Commerce and the Sumitomo Mitsui Trust Bank of Japan.

Earlier this year, another Arizona utility, Salt River Project, commissioned a 260MW solar-plus-storage project in the state, as the state looks to expand its solar portfolio. According to the US Solar Energy Industries Association (SEIA), Arizona had the fifth-most capacity in operation at the end of 2023, with 7.7GW connected to the grid.

The association expects the sector to grow by 9.1GW over the next five years, the fifth-most in the US.