Linea Energy Secures Financing for Georgia Solar Project

• Linea Energy secures groundbreaking financing for its 109-MWp Pineview solar project, set to illuminate Georgia by December 2025, marking a significant leap in renewable energy expansion.

Linea Energy, a renewable energy firm backed by EnCap Investments LP, has successfully closed project debt financing for its 109-MWp Pineview solar project in Wilcox County, Georgia. The financing package includes a construction-to-term loan, a tax equity bridge loan, and a letter of credit facility, organized by a consortium of lenders led by First Citizens Bank and Norddeutsche Landesbank Girozentrale. Specific financial details remain undisclosed.

The Pineview solar project commenced construction in October 2024 and is slated to become operational by December 2025. Linea Energy, established in 2022, focuses on wind, solar, and energy storage solutions, recently securing a USD 145 million loan to enhance its 4-GW project pipeline.

What financing strategies supported Linea Energy's Pineview solar project in Georgia?

Here are some additional financing strategies that supported Linea Energy's Pineview solar project in Georgia:

• Diverse Financing Structure: The financing package combines multiple types of financing instruments, providing a tailored approach to meet the specific needs of the project, which helps mitigate financial risk.
• Construction-to-Term Loan: This type of financing allows Linea Energy to secure funds for both the construction phase and the transition to long-term financing, ensuring continuous financial support throughout the project’s development.
• Tax Equity Bridge Loan: This loan enables Linea Energy to benefit from federal tax incentives, such as the Investment Tax Credit (ITC), which provides significant savings and enhances the project’s financial viability.
• Letter of Credit Facility: The inclusion of a letter of credit provides assurance to suppliers and contractors, enabling Linea Energy to secure favorable terms for the procurement of materials and services essential for the project's completion.
• Consortium of Lenders: Collaborating with multiple financial institutions, including First Citizens Bank and Norddeutsche Landesbank Girozentrale, allows for risk-sharing and increases the overall financing capacity for the project.
• Partnership with EnCap Investments LP: As a major investor in renewable energy projects, EnCap Investments LP strengthens Linea Energy’s financial position by providing not only capital but also industry expertise and connections.
• Focus on Long-Term Cash Flow: The structure of the financing strategy emphasizes generating stable cash flow over the project's lifespan, supporting future developments within Linea Energy’s broader portfolio.
• Use of Renewable Energy Guarantees: Engaging in power purchase agreements (PPAs) may lower risk and secure revenue, attracting additional financing options to ensure project stability.
• Community Engagement and Incentives: Aligning with local stakeholders and government programs might lead to additional grants and incentives that support financing and overall project acceptance.
• Scalability Potential: By demonstrating successful financing and construction strategies on the Pineview project, Linea Energy positions itself for future growth and attracts more investment into its expanding project pipeline.

These strategies work together to create a robust financing framework that supports the successful development and operation of the Pineview solar project.