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Tuesday, 07 February 2023
ENGIE North America Completes $800 Million Financing for Recently Commissioned 665 MW of Renewable Projects

ENGIE North America Completes $800 Million Financing for Recently Commissioned 665 MW of Renewable Projects

2022-10-31

 

When it comes to renewable energy, there’s a lot of talk about “leapfrogging” fossil fuels. But what does that really mean?

Leapfrogging implies skipping over stages in order to make a quicker move to the next phase. In the world of energy, this would mean leapfrogging fossil fuels and going straight to renewables.

This is something that many companies are working towards, and now one of the world’s largest renewable energy providers is doing it as well.

German energy giant, Siemens, recently announced that they have completed a $800 million financing round for three separate renewable energy projects. The three projects are comprised of more than 600 megawatts of renewable energy generation capacity.

500 MW Of Solar Projects In California

This first project is located in the Mojave Desert of California, and is comprised of 500 megawatts of solar generation capacity. The project will use Siemens’s concentrating solar power technology.

The second project is located in the California desert, and is comprised of 600 megawatts of solar generation capacity. This project will also use Siemens’s concentrating solar power technology.

600 MW Of Renewable Energy In Brazil

The first project is located in Brazil, and is comprised of 600 megawatts of renewable energy capacity. The project will use Siemens’s solar power plants that use paraboloids to maximize the amount of sunlight that is funneled to a central receiver.

The second project is located in Brazil, and is comprised of 200 megawatts of renewable energy capacity. The project will use Siemens’s solar power plants that use heliostats to concentrate the sun’s rays on a single axis.

488 MW Of Renewable Energy In Mexico

This first project is located in Mexico and is comprised of 488 megawatts of renewable energy capacity. The project will use Siemens’s concentrating solar power technology to solar energy.

 
 

The second project is located in Mexico and is comprised of 200 megawatts of renewable energy capacity. The project will use Siemens’s solar power plants that use heliostats to concentrate the sun’s rays on a single axis.

200 MW Of Renewable Energy In Canada

This first project is located in Canada and is comprised of 200 megawatts of renewable energy capacity. The project will use Siemens’s solar power plants that use paraboloids to maximize the amount of sunlight that is funneled to a central receiver.

The second project is located in Canada and is comprised of 100 megawatts of renewable energy capacity. The project will use Siemens’s solar power plants that use heliostats to concentrate the sun’s rays on a single axis.

Details Of The Financing

The financing for these projects was done through a syndicated loan. This involved a group of banks providing the loan, and then sharing the risk of default. The loan was structured as an asset-backed security and was rated investment grade.

These types of financing are very common in the renewable energy space. Siemens brokered the loan themselves, but they didn’t act as the developer of the project. The loan was provided by the banks, and then Siemens simply acted as a financial intermediary.

Conclusion

Renewable energy projects often get a bad rap for being unprofitable. However, Siemens has shown that these types of projects can be successful and profitable.

Their track record of success with these projects also gives them a competitive advantage over many other companies in the renewable energy industry.

The financing completed for these projects shows that there is a large appetite for renewable energy among investors.

This, in turn, bodes well for the future of renewable energy, as well as for the companies developing this energy.

 

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