Sabancı Renewables Announces Financial Closure for 232 MWdc Oriana Solar Project

The Project Expands Sabancı's Footprint in the US Renewable Energy Market

Sabancı Renewables Aims to Develop a 1GW Renewable Portfolio by 2025”
— Mr. Ismail Bilgin, Sabancı Renewables CEO
NEW YORK, NEW YORK, UNITED STATES, April 3, 2024 / -- Sabancı Renewables, a leading renewable energy company, has announced the successful financial closure for its 232 MWdc Oriana Solar Project in the United States. This milestone marks the company's expansion into the US renewable energy market and solidifies its commitment to sustainable energy solutions.

The Oriana Solar Project, located in Victoria County, Texas, is a 232 MWdc photovoltaic electric generating facility with an additional 60 MW/120 MWh of battery storage capacity. With a total investment of $243 million, the project will generate power to the Texas electricity markets, catering to the growing energy needs of load centers in the Gulf Coast region, including Houston and Corpus Christi.

This marks the second investment by Sabancı Renewables in the US, following the upcoming commencement of the commercial operation at the 272 MWdc Cutlass II solar project in the coming months. MUFG BANK, LTD acted as Documentation Agent, Coordinating Lead Arranger, Swap Coordinator, and a Lender. ING CAPITAL LLC served as Administrative Agent for the Lenders, Joint Lead Arranger, Green Loan Structuring Agent, LC Issuing Bank, and a Lender. NORD/LB Norddeutsche Landesbank Girozentrale participated as Joint Lead Arranger, LC Issuing Bank, and a Lender.

The 1,100-acre site strategically positioned approximately 10 miles north of Victoria, Texas, will play a pivotal role in advancing sustainable energy solutions. The engineering, procurement, construction, commissioning and project management of Oriana Solar will be designed and delivered by Bechtel. The Oriana Solar facility will include highly efficient bifacial solar panel technology that enables both sides of the panels to absorb sunlight. With a 15-year Power Purchase Agreement (PPA), the renewable power produced at Oriana Solar will be delivered to customers on the grid managed by the Electric Reliability Council of Texas (ERCOT). Construction of the Oriana Solar Project is slated to commence in the coming weeks, with commercial operations set to begin in Q2 2025.

The first solar investment of Sabancı Renewables in the US, 272 MWdc Cutlass II project, is set to commence operations in April 2024. Originally projected for completion by June 2024, the project's construction is now expected to be finalized two months ahead of the initially announced timeline, thanks to effective project and effective supply chain management. Notably, the financial closure and tax equity investment phases of the project were successfully completed, underscoring a significant achievement for Sabancı Renewables.

Sabancı Renewables CEO, İsmail Bilgin emphasized: “The swift progress and success of both Oriana Solar and Cutlass II underlines Sabancı Renewables' competence and commitment to becoming a key player in the renewable energy sector in the US. We are not only meeting but exceeding industry standards, demonstrating our dedication to providing clean and sustainable energy solutions. Throughout all these processes, we are enjoying significant advantages of being a Sabancı Holding company. As the largest private sector player in the energy sector in Turkiye, which stands as one of Europe's energy hubs, we gain substantial knowledge and maneuverability in this field. Combined with our business culture built on speed, flexibility, agility, and adaptability, we aim to strengthen our footprint in the United States, one of the world's most competitive energy markets.”

A subsidiary of leading Turkish conglomerate Sabancı Holding, Sabancı Renewables aims to develop and operate a 1 GW renewable portfolio by 2025. The company focuses on utility scale solar, onshore wind and battery projects; mainly in ERCOT, MISO and PJM markets. Following the company’s establishment in June 2022, Sabancı first acquired the 272 MW Cutlass Solar II project in October 2022. With Oriana Solar, the company will command more than 500 MW and will reach an important level in its initial investment plan.

Ms. Yeliz Kazan, Corporate Communications Manager
Sabancı Holding
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