SunZia Transmission and Wind projects start full construction

Renewable energy company Pattern Energy Group LP has closed an $11 billion non-recourse financing and begun full construction of SunZia Transmission and SunZia Wind, which together are being called the largest clean energy infrastructure project in US history.

SunZia Transmission is a 550-mile (885km) 525kV high voltage direct current (HVDC) transmission line between central New Mexico and south-central Arizona with the capacity to transport 3,000MW of clean electricity across western states.

SunZia Transmission will deliver clean power generated by Pattern Energy’s 3,515MW SunZia Wind facility, the largest wind project in the western hemisphere, which is being constructed across Torrance, Lincoln and San Miguel Counties in New Mexico.

The financing includes an integrated construction loan and letter of credit facility, two separate term facilities, an operating phase letter of credit facility, an innovative tax equity term loan facility and a holding company loan facility.

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“Our hope is this successful financing of the largest clean energy infrastructure project in American history serves as an example for other ambitious renewable infrastructure initiatives that are needed to accelerate our transition to a carbon free future,” said Hunter Armistead, CEO of Pattern Energy, in a release.

“We are very grateful to all of our financial partners who are backing SunZia as part of this record-setting project financing. Construction is well underway on this historic project that will deliver clean power with a generation profile that complements abundant solar generation available across the western United States.”

SunZia Wind and Transmission will employ more than 2,000 workers on-site during construction, including heavy equipment operators, electricians, labourers and others. The project will also utilise the expertise of several major suppliers and contractors.

The EPC contractor of the transmission line is Quanta Infrastructure Services Group and the HVDC supplier is Hitachi Energy. The EPC contractor for the wind project is Blattner Energy, a Quanta affiliated company. The wind turbines are being supplied by GE Vernova and Vestas.

SunZia Transmission and Pattern Energy have partnered with the New Mexico Renewable Energy Transmission Authority (RETA) on the development of the transmission project in New Mexico.

“This financing is a testament to the commitment of our financing partners to the renewable energy space and to Pattern,” said Daniel Elkort, executive vice president at Pattern Energy.

“The size and scale of both the SunZia project and this multifaceted financing show that the renewable energy space can secure attractive capital at levels previously only seen in traditional generation.”