BayWa r.e. focusing on solar and storage in 2 GW US pipeline expansion
BayWa r.e. appears to be prioritizing solar and storage development over wind development in the US as it plans to triple its pipeline in the states by the end of 2026.
The first half of the year has been a busy one for the firm, which has made a number of moves directed toward expanding its presence as an IPP in the US. Chief among these moves is the ongoing sale of its international solar trading business aptly named Solar Trade, which BayWa r.e. wind CEO Gordon MacDougal says it is targeting to close sometime next year.
In an interview with NPM, MacDougal said the goal of this sale is to direct proceeds into the company’s expansion efforts in the US with a goal of enlarging its managed portfolio to 3 GW from 1 GW by 2026. MacDougal says BayWa’s move to grow its US pipeline was driven by the IRA which, “unlocked opportunities unique to the US.”
“It was obvious to me the sale of Solar Trade was going to happen someday,” MacDougal said. “It’s all about timing.”
The sale coincides with the closing of a USD 115m credit facility with Nomura to support the development of utility-scale projects in the US. BayWa spokesman Scott Lusk said Nomura was chosen as the partner for this facility because of the firm’s flexibility. Although the multi-year facility is slated to support a portfolio of 1.1 GW of solar and 188 MWh of storage projects in the US, Lusk says it provides flexibility to add or remove projects.
“It allows BayWa to recycle development capital for pipeline growth and bridge funding needs for late-stage activities,” Lusk said.
BayWa solar CEO Fred Robinson says the firm has a long-term pipeline in the US of more than 10 GW, which makes up roughly 30 percent of its global pipeline. But NPM is specifically tracking a number of near-term projects across ERCOT, PJM and MISO. The majority of BayWa’s development efforts so far appear to be focused in ERCOT where it has roughly 1 GW in the queue between solar and storage projects. PJM follows with 380 MW and MISO comes in third with 285 MW.
BayWa’s recent announcement that it will procure 1.25 GW of domestically produced solar modules from Meyer Burger indicates that, at least for now, solar is the firm’s near-term focus. BayWa’s MacDougal said the firm is also exploring wind positions based on resource potential, demand, land availability and, perhaps most importantly, grid infrastructure and interconnection capabilities.
The largest project the firm currently has in the queues is the 400 MW Big Creek Solar project in Arkansas, which is slated to be completed next year. But the firm has three other 200 MW+ projects, including Knickerbocker Solar, Corazon Solar II and Guajillo Solar, all of which are under development in ERCOT.
*This story was originally published exclusively for NPM subscribers last month.
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