Clearway Energy Group has officially announced the financing closure and commencement of construction on the 300-MW Pine Forest solar project and 200-MW Pine Forest standalone energy storage project in Hopkins County, Texas. These projects are designed to generate enough clean electricity to power over 90,000 homes, while the storage facility will store excess energy and supply it during peak demand periods, offering much-needed flexibility to the Texas energy grid.
Financing and Bank Consortium
The total investment for the Pine Forest projects is $665 million, with the financing structured through a consortium of leading global banks. The bank group consists of:
- Société Générale
- Australia and New Zealand Banking Group Limited, New York Branch
- Banco Bilbao Vizcaya Argentaria S.A., New York Branch
- Commerzbank AG, New York Branch
- KeyBanc Capital Markets Inc.
- Lloyds Bank Plc
This financing strategy marks a significant milestone for Clearway Energy Group. Brooks Friedeman, Vice President of Capital Markets at Clearway, highlighted the importance of the financial backing in launching these projects. “Our Pine Forest projects represent a major investment in grid reliability in Texas. We value the financial support that our consortium of banks has provided to start construction of the Pine Forest projects,” he said.
Partnering with Dell Technologies and Universal Corporation
A significant portion of the Pine Forest solar project is contracted under a Virtual Power Purchase Agreement (VPPA) with Dell Technologies. This agreement aligns with Dell’s sustainability goals to source 75% of its electricity from renewable sources by 2030 and 100% by 2040. Mark Pringle, Senior Vice President of Global Facilities and EHS at Dell, emphasized that this collaboration brings them closer to achieving net-zero emissions by 2050. “Together with Clearway, we are not only envisioning a sustainable future, but actively building it,” he said.
Additionally, Universal Corporation has also secured a VPPA with the Pine Forest project. Universal’s portion will offset 100% of its U.S. electricity usage with renewable power, contributing towards their 30% reduction in operational greenhouse gas emissions by 2030.
Economic and Environmental Impact
The Pine Forest projects are expected to bring substantial economic benefits to Hopkins County. The development will:
- Create approximately 350 construction jobs and several permanent operations roles
- Contribute millions of dollars in direct investment to the local economy
- Generate more than $58 million in property taxes over the next two decades
These projects are scheduled to be operational by 2025. Clearway is also engaged in discussions with corporate entities regarding the transfer of clean energy tax credits associated with the Pine Forest solar and storage projects.
Why Pine Forest Matters for the Future of Renewable Energy
The Pine Forest solar and storage projects are a cornerstone in advancing Texas’s transition towards renewable energy. By combining solar energy generation with storage capabilities, Clearway is demonstrating how the integration of clean energy technologies can meet both present and future electricity needs.
This combination of solar and storage ensures that renewable power is not only available when the sun shines but also dispatched during peak demand hours, helping stabilize the grid. These initiatives set the stage for further innovation in sustainable energy solutions across the U.S., aligning with both corporate sustainability goals and the growing demand for reliable clean energy.
As Texas continues to position itself as a leader in renewable energy, projects like Pine Forest pave the way for a cleaner, more resilient energy future.
