Pacifico Power, a subsidiary of Pacifico Energy Group focused on renewable power development and energy services in the US, has teamed up with Sumitomo Corporation of Americas (SCOA) to secure $40 million in project tax equity funding. This financing will support a portfolio encompassing 27 MW of solar PV and 25 MWh of battery storage across California and Massachusetts. These projects are expected to deliver over $46 million in cost savings throughout their operational lifespan.
SCOA’s involvement as a tax equity partner marks their inaugural investment in distributed generation, underscoring their commitment to expanding renewable energy resources across the United States. Pacifico Power remains the sponsor, owner, and operator of these projects, with commercial operations slated to commence by the end of 2024.
Earlier in January 2024, Pacifico also closed a $29 million construction-to-permanent debt facility with Mitsubishi UFJ Financial Group (MUFG) and secured a $24 million transferability bridge loan, bringing the total transaction value to $93 million. This transaction represents Pacifico’s pioneering use of transferability provisions under the Inflation Reduction Act, enabling monetization of the projects’ investment tax credits—a milestone within the industry.
Kevin Pratt, President of Pacifico Power, expressed optimism about these partnerships, stating, “We’re pleased to announce Pacifico’s latest financing partnerships with Sumitomo and MUFG as we continue to accelerate deployment of clean energy infrastructure nationwide. As one of the first participants to close a transferability bridge loan under the IRA and a tax equity vehicle of this nature, we’re excited to build on the momentum that Pacifico is experiencing within clean energy.”
