Cypress Creek Renewables’ Largest Solar Development Project Reaches Commercial Operation in Texas
DURHAM, NC – November 16, 2020 – The 162 MW Wagyu solar PV project in Brazoria County, Texas is now delivering power to the grid. Located near Houston, Texas, the project is owned by Cubico Sustainable Investments (Cubico), a leader and global investor in renewable energy, and was developed by Cypress Creek Renewables.
Project construction was performed by RES (Renewable Energy Systems). In addition to acting as the original project developer, Cypress Creek is also providing ongoing operations and maintenance and asset management for Wagyu.
Wagyu has the unique combination of a 15-year corporate PPA from Starbucks and a 12-year physical hedge with BP. It is the third and final project to reach operations within a portfolio that won the prestigious IJGlobal Award for Best Renewables Portfolio Deal of the Year for North America. The IJGlobal Awards are held annually to celebrate the best-in-class transactions and organizations across the international infrastructure and energy sectors.
IJGlobal noted, “[t]he Wagyu project is particularly notable as one of the growing number of Texas solar projects to be contracted under a hedge rather than, or in addition to, a power purchase agreement. Merchant risk was mitigated by cross-collateralizing the back levered debt across the three projects and by including a tracking account to help meet balancing obligations under the energy hedge. Since the hedge provider did not provide a tracking account, this feature had to be provided by the lenders, a very innovative step.”
Sarah Slusser, CEO of Cypress Creek, said: “Wagyu is Cypress Creek’s largest project to date and our twenty first project in Texas to reach commercial operation, highlighting our team’s deep experience developing, building and financing projects in Texas. The sophistication and complexity of the deal structure provided an excellent opportunity for our finance team to flex their creativity. The entire Cypress Creek team is thrilled to work alongside Cubico in creating valuable projects that benefit communities, bringing jobs, clean energy, and a tax base for the future.”
Cypress Creek collaborated with Cubico on the tax equity and the debt financing for the project. Tax equity was provided by U.S. Bank, while project finance debt was provided by HSBC, NORD/LB, and Rabobank.
About Cypress Creek Renewables
Cypress Creek Renewables is powering a sustainable future, one project at a time. We develop, finance, own and operate utility-scale and distributed facilities across the country. With more than 10.3 gigawatts of solar developed and more than 3.4 gigawatts under management, Cypress Creek is one of the country’s leading solar and storage companies. For more information about Cypress Creek, please visit cypresscreekenergy.com.
About Cypress Creek Energy
Cypress Creek Energy is a U.S. independent power producer and developer of energy infrastructure designed to meet the nation’s rapidly growing demand for reliable, cost-effective, and sustainable electricity. Built on more than a decade of experience developing, financing, owning, and operating energy assets, the company delivers integrated solar, storage, and firm capacity solutions that serve utilities, communities, and large-load customers.
Cypress Creek believes energy infrastructure should create lasting value beyond generating affordable, sustainable electricity. Through responsible development, long-term ownership, and meaningful community partnerships, the company is committed to strengthening the places where it lives, works, and builds. Since inception, Cypress Creek has commercialized 19 GW of projects and today has more than 6.8 GW of assets operating or under construction, along with a 19 GW development pipeline. Through Cypress Creek Solutions, its in-house operations and maintenance platform, their experienced team manages more than 8.6 GW of energy assets for both Cypress Creek and third-party owners across 24 states.