Longroad breaks ground on 377 MW Sun Streams 4 solar + storage project – EQ

In Short : Longroad Energy has commenced the construction of its Sun Streams 4 solar and energy storage project, marking a significant milestone in renewable energy development. With a capacity of 377 MW, this project demonstrates Longroad’s commitment to expanding clean energy infrastructure. By integrating energy storage capabilities, the project also addresses the challenge of grid reliability, ensuring a more stable and resilient energy supply. This initiative contributes to the growth of renewable energy capacity and supports the transition toward a more sustainable energy future.

In Detail : Longroad Energy has started construction on the Sun Streams 4 project in Maricopa County, Arizona. The project will deliver 377 MWdc of PV and 300 MWac / 1,200 MWh of storage and is expected to achieve commercial operations by mid-2025.

Longroad, a U.S.-based renewable energy developer, owner and operator, recently closed on the financing for Sun Streams 4, which is the company’s largest solar + storage project to date and the third project in its Sun Streams complex.

Sun Stream 4’s total output, enough to power 120,000 homes, will be purchased by Arizona Public Service (APS) via a long-term Power Purchase Agreement (PPA). The project will help support system reliability in Arizona, particularly during the peak demand summer months.

“Longroad continues to make significant strides with our flagship Sun Streams portfolio in the important Arizona market,” said Paul Gaynor, CEO of Longroad Energy. “A landmark project for us, Sun Streams 4 has the distinction of being Longroad’s largest project to date by both megawatts and investment capital, and one of our first projects to incorporate provisions from the historic Inflation Reduction Act.”

Gaynor added that the Sun Stream 4 represents Longroad’s second PPA negotiated with APS, as well as being one of U.S. Bancorp Impact Finance’s largest ever tax equity investments and the company’s third project being built by McCarthy Building Companies in the Sun Streams cluster of projects.

“Arizona is experiencing rapid growth and development, and with the demands of our hot summer months, APS customers will continue to count on reliable power as we invest in additional energy resources,” said Justin Joiner, APS VP of resource management. “This project will add more solar power to our diverse and balanced energy portfolio and provide long-term value to our customers.”

The project is part of the Sun Streams portfolio that Longroad acquired from First Solar in early 2021. In addition to Sun Streams 4, the portfolio includes:

Sun Streams 2 – 200 MWdc solar project which has been operational since mid-2021.
Sun Streams 3 – 285 MWdc PV and 215 MWac / 860 MWh storage project currently under construction with commercial operations expected in 2024.

In a continuation of their longstanding partnership, First Solar will supply Longroad with its Series 6 Plus solar modules for Sun Streams 4.

Debt financing was led by CIBC and included ANZ, PNC, BNP Paribas, Commerzbank AG, CoBank, U.S. Bancorp Impact Finance, National Australia Bank, and Société Générale. CIBC acted as Coordinating Lead Arranger, Administrative Agent, and Collateral Agent, and ANZ served as Joint Lead Arranger and Green Loan Coordinator. U.S. Bancorp Impact Finance served as Joint Lead Arranger and Depositary Bank.

During the construction period, the project is expected to employ over 200 people. McCarthy Building Companies, whose Renewable Energy team is based in Phoenix, Arizona, was selected as the engineering, procurement and construction (EPC) contractor on the project. McCarthy built the award-winning Sun Streams 2 project and is completing construction of Sun Streams 3. The project will pay prevailing wage and utilize registered apprentices in accordance with the Inflation Reduction Act (IRA).

“The positive impact that Longroad is having on Arizona’s transition to sustainable renewable energy by developing another large-scale solar project with battery storage is incredible,” said Scott Canada, executive VP of McCarthy’s Renewable Energy team.

Sun Stream 4’s 300 MWac / 1200 MWh battery energy storage system (BESS) will be provided by U.S.-based energy storage platform provider Powin. The BESS will include SMA inverters and cells from AESC, which will be integrated into Powin’s Modular and Scalable Centipede Energy Storage Platform. Longroad, in conjunction with Powin and NovaSource Power Services, will provide long-term operations and maintenance services.

Nextracker is supplying trackers for the project and Sungrow is supplying the solar inverters. Comprehensive operations and maintenance services for the project will be provided by NovaSource Power Services and Longroad’s affiliate Longroad Energy Services.

The Sun Streams 4 design includes numerous wildlife corridors which are designed to protect native species habitat and allow wildlife passage through the project area.

Over the project’s useful life, it will contribute more than $100 million in revenue for Arizona schools and communities through its long-term leases with the Arizona State Land Department and tax remittances.