Cypress Creek Renewables developed 162 MW Wagyu solar PV project in Brazoria County, Texas is now delivering power to the grid.
The project is owned by Cubico Sustainable Investments (Cubico) and is located near Houston, Texas.
The construction of the project was carried out by RES (Renewable Energy Systems). In addition to serving as the original project creator, Cypress Creek also provides Wagyu with ongoing operations and maintenance and asset management.
Wagyu has a special mix of Starbucks’ 15-year corporate PPA and BP’s 12-year physical hedge. It is the third and final project to enter operations within a portfolio that has received the coveted IJGlobal Award for Best Renewable Portfolio of the Year for North America.
The IJGlobal Awards are presented annually to recognize the best-in-class transactions and organizations in the international infrastructure and energy sectors.
“The 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.”
IJGlobal.
“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.”
Sarah Slusser, CEO of Cypress Creek.
