Barclays and Lightsource bp Sign $140 Million Tax Equity Agreement for Solar Project in St. Landry Parish, Louisiana

Barclays and Lightsource bp have recently announced their partnership on a $140 million tax equity deal to fund the construction of the Prairie Ronde 180MWdc solar project in St. Landry Parish, Louisiana. This collaboration is one of the first endeavors undertaken by Barclays' new Sustainable Project Finance team, working alongside the bank's Energy Transition Group, which was established last month to offer strategic guidance to clients as they explore opportunities in the energy transition sector. Acting as the sole external equity investor, Barclays' participation in this tax equity deal aligns with the bank's aim to facilitate $1 trillion of Sustainable and Transition Financing between 2023 and the end of 2030.

Boosting the Local Economy and Environment

Under the agreement, Lightsource bp will be responsible for the construction, ownership, and operation of the solar farm, bringing an estimated 250 job opportunities to the local community and supporting domestic supply chains during the construction phase. Commercial operation of the project is anticipated to commence in late 2024. The completion of the Prairie Ronde solar project will bring significant benefits to the St. Landry Parish community. Lightsource bp has pledged to allocate $250,000 towards philanthropic activities and charity donations benefiting local organizations in St. Landry Parish. In addition, the company is committed to enhancing biodiversity in the area by partnering with local experts to cultivate a range of beneficial plants underneath and around the solar panels.

Powering the Future with Renewable Energy

Lightsource bp has already secured a power purchase agreement with McDonald's Corporation. The solar energy generated by the project will be sufficient to power over 600 McDonald's restaurants with renewable electricity each year. Furthermore, it is estimated that the project will reduce carbon emissions by 231,800 metric tons annually.

A Promising Future for St. Landry Parish

Jessie Bellard, the President of St. Landry Parish, expresses enthusiasm for Lightsource bp's investment, stating that it ushers in a new era for the community and its schools. The funding provided by Lightsource bp supports the creation of employment opportunities, infrastructure development, and improved education for the youth of the parish. With this support, St. Landry Parish is well-positioned to emerge as a regional leader in innovation and opportunity for all.

Emilie Wangerman, Head of USA and Interim Chief Operating Officer at Lightsource bp, emphasizes the company's commitment to delivering affordable clean energy to the St. Landry community. Lightsource bp aims to expand its investment in Louisiana, contributing to a low-carbon, independent energy future for the state. Wangerman also highlights the positive impact that sustainable and energy transition financing, exemplified by Barclays' involvement in this project, can have on local economies. Throughout the life of the Prairie Ronde project, it is expected to generate tax revenues surpassing $20 million for St. Landry Parish public services, including the local school system.