Construction is now in progress for SunZia Transmission and SunZia Wind, initiatives by Pattern Energy Group LP (Pattern Energy) aimed at providing clean power to over 3 million Americans and generating an anticipated economic impact exceeding $20 billion. This marks the commencement of the largest clean energy infrastructure project in U.S. history.
SunZia Transmission, a 550-mile ±525 kV high-voltage direct current (HVDC) transmission line connecting central New Mexico to south-central Arizona, has commenced full construction. This transmission line can transport 3,000 MW of clean, reliable, and affordable electricity across Western states. It will transmit clean power generated by Pattern Energy’s SunZia Wind facility, a colossal 3,515 MW wind project under construction across Torrance, Lincoln, and San Miguel Counties in New Mexico, making it the largest wind project in the Western Hemisphere.
The $11 billion non-recourse financing secured for this groundbreaking project includes various components such as integrated construction loans, letter of credit facilities, term facilities, operating phase letter of credit facilities, an innovative tax equity term loan facility, and a holding company loan facility.
For the construction and term facilities totalling approximately $8.8 billion, several financial institutions, including BNP Paribas, Crédit Agricole Corporate and Investment Bank, CoBank, ACB; Desjardins Group, Export Development Canada, ING Capital LLC, Intesa Sanpaolo S.p.A., New York Branch, KFW IPEX-Bank, MUFG Bank, Ltd., National Bank of Canada, Natixis Corporate & Investment Banking, Societe Generale, Sumitomo Mitsui Banking Corporation, and Wells Fargo Securities, LLC, have played key roles as Initial Coordinating Lead Arrangers and Joint Bookrunners.
The financings are structured as green loan facilities in alignment with the Green Loan Principles, with BNP Paribas, Crédit Agricole Corporate and Investment Bank, Desjardins Group, ING Capital LLC, Intesa Sanpaolo S.p.A., New York Branch, National Bank of Canada, Natixis Corporate & Investment Banking, Societe Generale, and Sumitomo Mitsui Banking Corporation, and Wells Fargo Securities, LLC acting as Co-Green Loan Structuring Agents.
Additionally, a $2.25 billion tax equity term loan facility has been provided by Banco Santander, S.A, New York Branch and Santander Bank N.A. as Joint Coordinating Lead Arrangers. Bank of America, GE Vernova’s Financial Services business, Natixis Corporate & Investment Banking, and Royal Bank of Canada acted as Joint Lead Arrangers.
Nomura Securities International, Inc., and CPPIB Credit Investments III Inc. have participated in the final piece of the financing, a holding company facility to support initial equity capital for the project.
The construction will provide employment opportunities for more than 2,000 workers on-site, involving various skilled roles. SunZia Wind and Transmission have enlisted industry-leading suppliers and contractors, with Quanta Infrastructure Services Group as the EPC Contractor for the transmission line and Hitachi Energy as the HVDC supplier. Blattner Energy, a Quanta-affiliated company, serves as the EPC contractor for the wind project, with wind turbines supplied by GE Vernova and Vestas.
