Longroad Energy, a prominent U.S.-based renewable energy developer, has announced the financial close of its Serrano project.
Serrano project is comprising a 220 MWdc solar facility coupled with a 214 MWac / 855 MWh energy storage system. The project, located in Pinal and Pima Counties, Arizona, marks Longroad’s pioneering venture into utilizing First Solar’s domestically manufactured Series 7 panels. Construction has already commenced, with commercial operations anticipated to commence by mid-2025.
With the addition of Serrano, Longroad’s solar footprint in the Arizona market surges past an impressive 1.5 GW, cementing its position as a key player in the region’s renewable energy landscape.
The output generated by the Serrano project has been secured through a long-term Power Purchase Agreement (PPA) with Arizona Public Service (APS). Once operational, the project is projected to provide electricity to approximately 61,000 homes in Arizona, contributing significantly to grid reliability, particularly during the state’s sweltering summer months.
Longroad Energy’s CEO, Paul Gaynor, expressed his satisfaction with achieving the project’s financial milestones and initiating construction, emphasizing the company’s commitment to supporting American manufacturing and bolstering the domestic solar supply chain. Gaynor also extended gratitude to banking partners, APS, McCarthy, as well as state and county authorities for their collaboration in advancing the project.
APS Vice President of Resource Management, Brian Cole, lauded the project’s contribution to enhancing the utility’s diverse energy mix, underscoring the value it brings to Arizona’s customers in terms of reliability, affordability, and sustainability.
The Serrano project epitomizes the enduring collaboration between Longroad Energy and First Solar, with Serrano marking the fourth Arizona project financed by Longroad utilizing First Solar’s modules. Notably, Serrano represents the debut of Longroad’s utilization of thin-film Series 7 modules.
The project’s debt financing was spearheaded by CIBC and Societe Generale, with additional participation from ANZ, PNC, Commerzbank AG, and U.S. Bancorp Impact Finance. Athene Annuity and Life Insurance Company, affiliated with Apollo Global Management, serves as the project’s tax equity investor.
McCarthy Building Companies has been entrusted with the engineering, procurement, and construction (EPC) responsibilities for Serrano. The project is expected to generate over 300 employment opportunities during the construction phase, in adherence to prevailing wage regulations.
The Serrano project’s battery energy storage system (BESS) will be provided by Powin, incorporating SMA inverters and AESC cells into Powin’s Modular and Scalable CentipedeTM Energy Storage Platform. Longroad, in collaboration with Powin and NovaSource Power Services, will oversee long-term operations and maintenance services for the BESS.
Nextracker and Sungrow are supplying trackers and solar inverters, respectively, for the project, while comprehensive operations and maintenance services will be delivered by NovaSource Power Services and Longroad Energy Services.
The commencement of the Serrano project marks a significant milestone in Longroad Energy’s mission to advance renewable energy infrastructure while bolstering the sustainability and resilience of Arizona’s energy grid.