APG Asset Management Acquires a 49% Stake in Major Gemini Solar and Battery Storage Development
Posted on 10/12/2022
Gemini is currently the largest solar and storage project under construction in the United States. The US$ 1.2 billion project is located near Las Vegas. Gemini is projected to generate 690 megawatts (MW) of solar energy and provide 1416 megawatt hours (MWh) of battery storage. Gemini is expected to generate enough clean energy to power more than 400,000 households during peak periods and save 1.5 million metric tons of carbon dioxide annually. The project is scheduled to become operational in 2023. Gemini is scheduled to be constructed on federal land 25 miles (40 kilometers) north of Las Vegas by the end of 2023.
PPA and Berkshire
All of Gemini’s output is covered by a 25 year Power Purchase Agreement with NV Energy, a subsidiary of Berkshire Hathaway. NV Energy is a public utility which generates, transmits and distributes electric service in northern and southern Nevada, including the Las Vegas Valley, and provides natural gas service in the Reno–Sparks metropolitan area of northern Nevada.
In October 2022, NV Energy disclosed they are raising energy rates due to the rising cost of natural gas, which is used to fuel the company’s power plants. As of October 1, 2022, the residential rate for Southern Nevada is 13 cents a kilowatt-hour and the small business rate is 8 cents a kilowatt-hour.
The size, scale, and integration of battery storage makes Gemini one of the most advanced clean energy projects under development. APG Asset Management, on behalf of Stichting Pensioenfonds ABP, is acquiring this 49% equity stake in Gemini from Quinbrook Equity Partners (Quinbrook Infrastructure Partners), a specialist investment manager focused exclusively on energy transition infrastructure, and its portfolio company Primergy Solar, LLC.
APG
APG has been an active infrastructure investor since 2004, investing over €17 billion to date. APG’s investments include assets in the power & utilities, energy, transport infrastructure and telecommunications sectors. In the US, APG has several direct investments in utility-scale solar and storage assets.
April 2022 Financing Deal
On April 25, 2022, Quinbrook Infrastructure Partners and Primergy Solar had a final close of a financing deal of US$ 1.9 billion in debt and tax equity financing for the Gemini Solar + Storage project. The Gemini debt financing consists of US$ 1.3 billion in credit facilities, including a construction/term loan, tax equity bridge loan and letter of credit facility. The Gemini financing includes US$ 532 million in tax equity commitments, which is believed to be the largest single-asset tax equity solar financings ever completed in the U.S., provided by Truist Bank and Bank of America. The construction facilities were led by four coordinating lead arrangers, KeyBanc Capital Markets, Inc., MUFG Bank Ltd., Bank of America, N.A. and Norddeutsche Landesbank Girozentrale, New York Branch. The coordinating lead arrangers successfully syndicated the credit facilities to 19 lenders, and Quinbrook and Primergy arranged the US$ 95 million mezzanine debt facility from Voya Investment Management.
