Boosting Solar Output In Texas and California with Clearway Energy
Texas and California are leading the transition to solar energy, the fastest-growing renewable energy in the United States. Societe Generale partnered with Clearway Energy Group, one of the largest clean energy developers and operators in the US, to lead the financing of two major solar projects with the capacity to power roughly 150,000 homes across these two States.
Solar energy continues to be the fastest-growing renewable energy source in the United States and is expected to grow 75% between 2023 and 2025 according to the US Energy Information Administration (EIA). Globally, the solar market is expected to reach $436 billion by 2032, nearly double its 2023 valuation of $253 billion.
In the United States, Texas and California are leading the transition to solar energy and continue to be among the top states in terms of solar generation thanks to their sunnier climates.
Clearway Energy Group, a San Francisco-based renewable energy company which manages a diverse portfolio of wind, solar and storage projects, is one of the largest clean energy developers and operators in the US. Currently, Clearway operates solar projects in 19 states in the US and produces enough renewable energy to power more than 2 million homes.
2 solar construction and storage projects
Earlier this year, Societe Generale partnered with Clearway Energy Group to lead the financing of two major solar projects in Texas and California. In May, the bank led the financing for a $550 million deal for the construction of Clearway’s Rosamond South I 140 MW solar and 118 MW storage project located in Kern County, California. In September, Societe Generale led the $665 million construction financing of Clearway’s Pine Forest solar and storage projects in Hopkins County, Texas, which are expected to generate and deliver 300 MW and 200 MW of capacity respectively.
Together, the Rosamond South and Pine Forest projects have the capacity to power roughly 150,000 homes across Texas and California with reliable and low-cost energy. The storage systems will enable a more reliable and flexible energy grid to protect communities from power blackouts during periods of high demand. Energy storage installations have been on the rise in the US, nearly doubling in total capacity between 2022 and 2023. They play a critical role in increasing grid stability for solar energy sources in particular, given peak energy usage typically occurs later in the day when solar generation is lower.
Financing solar energy output to power around 1.2 million homes in 2024
Societe Generale has built a strong track record financing renewable energy projects across the globe with a particular focus on solar. In 2024 alone, Societe Generale’s Energy Plus Group has financed 19 solar projects across the Americas, which amounts to more than 4 GW of new-build solar capacity. This capacity is the equivalent to the energy required to power around 1.2 million homes, or replacement power to displace 2.8 metric tons of CO2 from coal-fired power or 0.7 metric tons of CO2 from gas-fired power.
Societe Generale’s commitment to the renewable energy sector in the US and other energy transition initiatives was recently recognized at the 2024 IJGlobal ESG Awards where the bank was awarded “North America ESG Lender of the Year”.
“Societe Generale is committed to advancing the global green energy transition and to helping the US reach its net-zero carbon emissions targets,” said Ahmed Maqsood of Societe Generale’s Energy Plus Group. “We recognize the vast economic potential of the solar market, as the fastest growing source of power in the US and are thrilled to partner with top-tier developers like Clearway as they continue to lead the growth of solar power generation across the country.”
Both Clearway projects are expected to reach commercial operation in 2025.