Barclays and Lightsource bp have agreed on a $140 million tax equity deal to fund the construction of the Prairie Ronde 180MWdc solar project in St. Landry Parish, Louisiana.
The agreement is one of the first led by Barclays’ new Sustainable Project Finance team, in collaboration with the bank’s Energy Transition Group. Energy Transition Group, a group created last month to offer strategic advice to clients exploring energy transition opportunities. Barclays acted as the sole external equity investor on the $140 million tax equity deal, contributing to the bank’s goal to facilitate $1 trillion of Sustainable and Transition Financing between 2023 and 2030.
Lightsource bp intends to construct, own, and operate the solar farm, which will generate 250 new jobs during construction, supporting local workers and domestic supply chains. The project is expected to start operating commercially in late 2024.
After completion, the project will bring significant benefits to the St. Landry Parish community. Lightsource bp has pledged $250,000 in funds for philanthropic activities and charity donations to local St. Landry Parish organizations.
Additionally, they have committed to enhancing biodiversity on the land, collaborating with local experts to grow various beneficial plants under and around the solar panels.
Lightsource bp has already arranged a power purchase deal with McDonald’s Corporation. The solar energy generated by the project is enough to power over 600 McDonald’s restaurants with renewable electricity annually, and it's estimated to reduce 231,800 metric tons of carbon emissions each year.
St. Landry Parish President Jessie Bellard stated: “Investment from Lightsource bp is a significant advancement for our community and schools. Their funding supports job creation, improves infrastructure, and enhances education for our children. This backing positions St. Landry Parish to become a regional leader in innovation and opportunity for all.”
Emilie Wangerman, Head of USA and Chief Operating Officer (interim) at Lightsource bp, remarked: “As members of the St. Landry community, we are eager to deliver affordable clean energy while expanding our investment in Louisiana to help power the state’s low-carbon, independent energy future. What's particularly exciting is that commitments like Barclays' to sustainable and energy transition financing also help boost local economies. The Prairie Ronde project is expected to provide over $20 million in tax revenue to St. Landry Parish public services, such as local school systems, over the project's lifespan.”
James Edmonds, Barclays Global Head of Sustainable Project Finance, commented: “We are proud to have secured this tax equity commitment, which will provide significant benefits to the local community in St. Landry Parish. Barclays is fully dedicated to a fair transition and collaborating with key clients like Lightsource bp to assess all economic and societal opportunities as we expand climate finance. Mobilizing strategic capital is crucial for the energy transition and ensures that Barclays can make a visible impact in accelerating the development of clean energy projects.”
