Vesper Energy expands its letter of credit to ramp up solar and storage development work

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Utility-scale solar developer and operator Vesper Energy said it expanded an existing $100 million letter of credit facility to $140 million.

The expanded credit is expected to let the Houston-based company speed development of its 3.5 GW of solar and 2.5 GWh of energy storage pipeline. Macquarie Group served as lead arranger of the upsized facility after closing the earlier financing deal in 2020.

Vesper Energy added two banks to its facility, Landesbank Hessen-Thüringen Girozentrale and ICBC Standard Bank Plc. The company will use the expanded facility to post securities for power purchase agreements (PPAs) and interconnection agreements with energy transmission networks.

Since its start in 2015, Vesper Energy has commercialized more than 680 MW of utility-scale solar projects in the U.S. It plans to start work on two facilities in Ohio and Pennsylvania in early 2022, and has a larger construction program planned for 2023.

Vesper Energy earlier said that its Deer Creek Solar + Storage project signed a 20-year PPA for 50 MW of solar energy and 200 MWh battery storage with Desert Community Energy, a community choice aggregator in Palm Springs, California.

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