Barclays, Lightsource bp Partner in USD 140 Million Tax Equity Deal for Louisiana Solar Project

Barclays, in collaboration with Lightsource bp, has revealed an USD 140 million tax equity agreement aimed at financing the construction of the Prairie Ronde 180 MWdc solar project in St. Landry Parish, Louisiana.

This initiative, spearheaded by Barclays' newly formed Sustainable Project Finance team, marks a significant stride in the bank's commitment to facilitate USD 1 trillion of Sustainable and Transition Financing between 2023 and 2030. Acting as the sole external equity investor, Barclays is positioning itself at the forefront of driving sustainable energy solutions.

Lightsource bp, slated to construct, own, and operate the solar farm, is poised to inject vitality into the local economy, with the project anticipated to generate 250 employment opportunities during the construction phase.

Scheduled to commence commercial operations by late 2024, the Prairie Ronde project holds promise for St. Landry Parish, with Lightsource bp pledging USD 250,000 toward philanthropic endeavors and committing to enhancing biodiversity in collaboration with local experts.

Furthermore, a strategic power purchase agreement has been inked with McDonald's Corporation, highlighting the project's potential to deliver renewable electricity to over 600 McDonald's restaurants annually, thereby curbing an estimated 231,800 metric tons of carbon emissions per year.

Expressing optimism, Jessie Bellard, St. Landry Parish President, hailed Lightsource bp's investment as a catalyst for transformative change, poised to invigorate community development and fortify educational resources for future generations. "With this support, St. Landry Parish is poised to become a regional leader in innovation and opportunity for all,” said Bellard. 

Emilie Wangerman, Head of USA and Chief Operating Officer (interim) at Lightsource bp, emphasized the company's commitment to fostering clean energy solutions while enriching local economies. "The Prairie Ronde project is expected to provide more than USD 20 million tax revenue to St. Landry Parish public services such as local school systems over the life of the project,” said Wangerman. 

James Edmonds, Barclays Global Head of Sustainable Project Finance, lauded the tax equity commitment as a testament to Barclays' dedication to facilitating a just transition towards sustainable energy solutions. Edmonds underlined the key role of strategic capital mobilization in accelerating the scale-up of clean energy initiatives, affirming Barclays' resolve to drive meaningful impact in the domain of climate finance.