About the Oberon Solar + Storage project
This enormous capacity can sufficiently supply power to more than 207,000 homes annually.
Tesla’s Megapacks also provide the facility with an energy storage capacity of 250 MW/1 GWh. According to Drive Tesla Canada, the project is among the biggest solar power plants in the country.
The Oberon project’s produced Energy, Renewable Energy Credits, and Resource Adequacy will be available for several off-takers like Calpine Energy Solutions, Constellation, Ava Community Energy (formerly East Bay Community Energy), Microsoft, and San Diego Community Power.
How does the project benefit the US?
Intersect Power indicated that the Oberon Solar + Storage project aligns with the Biden Administration’s efforts to expand the local solar industry of the country, which the Inflation Reduction Act also funds.
The project utilizes domestically produced contents, including First Solar modules from Ohio, Nextracker’s NX Horizon trackers, and structural steel from the US. It also employs Tesla Megapacks from Lathrop, California.
In addition, it is also the first project to execute the Bureau of Land Management’s plan for desert-based renewable energy storage, which reserved over 10 million acres of land and priority locations for renewable energy-related projects.
“[The project is] a case study in how the clean energy industry can maximize project benefits by prioritizing domestic supply chains and union labor to ensure the rewards of the clean energy transition are felt by all Americans. This project demonstrates that Intersect continues to pioneer procurement standards for our industry that live up to the vision of the IRA and deliver transformative clean energy projects that move the needle on the deep decarbonization of our economy.”Intersect Power chief executive officer, Sheldon Kimber
Source of funds
Intersect also disclosed that the development of the project is funded under the portfolio financing disclosed last September. It secured a portfolio level term debt, tax equity, and construction financing from major financial institutions and investors like HPS Investment Partners and other Co-Investors.
The Tax Equity came from Morgan Stanley Renewables Inc. and US Bancorp Impact Finance. Meanwhile, the construction debt was from the following entities: “Coordinating Lead Arrangers MUFG and Santander Corporate & Investment Banking, along with CoBank, KeyBanc Capital Markets, Helaba, Bank of America, Zions Capital Markets and Nord LB as Joint Lead Arrangers and SuMi TRUST as a participant.”
The Oberon Solar + Storage project is a significant boost in Tesla’s energy business, providing the company with another source of income. Intersect’s decision to utilize Tesla Megapacks is unsurprising, given that numerous companies have already tested the large-scale battery storage in various projects worldwide.