DESRI and Ranger Power secure financing for two 290 MW solar projects in the United States

Two photovoltaic projects with a combined capacity of 290 megawatts (MWac), located in the state of Michigan, have reached a critical milestone with the official announcement of their financing and the start of construction works. Developers D.E. Shaw Renewable Investments (DESRI) and Ranger Power confirmed financial close for the Heartwood Solar (150 MWac) project in Hillsdale County and the White Tail Solar (140 MWac) project in Washtenaw County.

A portfolio of 12 projects for DESRI in Michigan

According to Thomas de Swardt, Chief Commercial Officer of DESRI, Heartwood and White Tail bring the total number of projects completed by the company in Michigan to twelve since 2019, in partnership with Ranger Power. Heartwood has a power purchase agreement with Consumers Energy, while White Tail will supply electricity to the Lansing Board of Water & Light and the Michigan Public Power Agency (MPPA). White Tail is scheduled to begin commercial operations before the end of 2025, while Heartwood is expected to come online in 2026.

At its peak, the Heartwood construction site is expected to employ up to 300 individuals. Both projects are projected to generate more than USD62mn in local tax revenues over their lifespans, according to the developers. The partners also stated they contributed USD732,950 to local development initiatives through Michigan’s Renewable Ready Communities Fund.

Structured financing led by a banking consortium

Financing for both projects was arranged by a group of financial institutions, including Fifth Third Bank and Zions Bancorporation as Coordinating Lead Arrangers. Bank of America, Commerzbank, and Sumitomo Mitsui Trust Bank, New York Branch, acted as Joint Lead Arrangers. Specific financial figures were not disclosed.

Engineering, procurement, and construction of the photovoltaic facilities were awarded to Primoris Services Corporation through its Renewable Energy division. High-voltage installations will be handled by Consulting Engineers Group (CEG), designated as the EPC (Engineering, Procurement and Construction) contractor.

Local partners engaged in energy supply

Consumers Energy, the leading utility provider in Michigan, is among the off-takers of Heartwood’s output. “Our plan relies on the development of clean and reliable projects with solid partners like Ranger Power,” said Sri Maddipati, Vice President of Electric Supply at Consumers Energy.

MPPA, which groups municipal electricity services across the state, also confirmed its involvement in the White Tail project. Patrick Bowland, CEO and General Manager of MPPA, welcomed the ability of DESRI and Ranger Power to collaborate with the public sector to develop new long-term energy supply sources.