A Texas renewables developer is about to test investors’ appetite for solar farms in the state after February’s devastating freeze rendered some power plants inoperable for days.
Caprock Renewables is looking to raise equity for a $550 million portfolio of utility-scale solar in southern Texas, said Chief Executive Officer Thanasis Iatrou. The Austin-based company hired Cantor Fitzgerald to advise on the process.
The planned projects come as power-plant investors reckon with potentially heavy losses from Texas’s energy crisis — and the possibility of regulatory changes that could drive up costs for renewables generators.
“We have confidence that in the next six months that these issues will be resolved in Texas for good projects,” Iatrou said in a phone interview. He’s aiming to get a deal done in the fourth quarter.
The portfolio consists of three, build-ready projects in southern Texas, according to Iatrou. A total of 520 megawatts of capacity has been contracted to a large, investment-grade financial corporation with a tax equity investment accounting for 35% of the cost lined up.
Still, given the uncertainty in the Texas market, the tax equity investor asked for more time finalize its investment, said Iatrou, who declined to disclose the parties.