Renewable Energy Finance: Intersect Power secures a ~$800mn revolving credit facility to support the expansion of its clean energy platform

published on 29 June 2023

Deal details: Deutsche Bank, Nomura Securities International, and Santander CIB spearheaded the financing, with additional contributions from First Citizens Bank, HSBC, and Celtic Bank. The funds raised will serve as a catalyst for the development, construction, and operation of Intersect Power's 8.5 GW pipeline in the US comprising renewable energy, energy storage, and green hydrogen projects. This agreement follows a series of significant capital raises by prominent players in the industry, including Invenergy, Clearway Energy, and Origis Energy, all aimed at advancing their respective project pipelines within the country.

Deal rationale: With the current deal, Intersect Power has successfully raised ~$4.6bn of capital since the beginning of 2022, enabling the company to navigate recent macroeconomic challenges and fuel its expansion. The funding secured thus far has facilitated the development of a substantial near-term pipeline, comprising ~2.2 GWp of solar photovoltaic (PV) projects and 1.4 GWh of co-located storage in the southern and southwestern regions of the US, scheduled to be operational by 2023. With the new capital injection, Intersect Power is well-positioned to advance its early-to-mid-stage pipeline, which encompasses ~8.5 GWp of renewables and 8 GWh of storage. The funds will also be utilized to fulfill payments for their recent orders of solar modules, totaling ~7.3 GW, from First Solar. Moreover, the capital will facilitate Intersect Power's entry into new markets and technologies, including their ambitious plans to establish nearly 1 GW of green hydrogen production capacity in the coming years, made possible through their technology partnership with Electric Hydrogen.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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