Lightsource BP has completed a $380m financing and started construction works on two US solar projects.

The 163MW Elm Branch and 153MW Briar Creek solar projects will undergo construction in Texas, US, approximately 40 miles south of Dallas.

Bank of America provided the tax financing for the two projects. Debt for the facilities came from mandated lead arrangers ING Capital and financial services group Societe Generale. Lightsource BP will fulfil the remaining equity requirements.

Lightsource BP Americas CEO Kevin Smith said: “This transaction is a demonstration of the low risk and stable yield opportunities that renewable energy projects offer to investors, the quality and bankability of our developed assets, and the confidence that top tier investors have in us.

“Despite challenges posed with Covid-19, Lightsource BP reached financial close on over $1.2bn in transactions in the US in 2020, a substantial increase from 2019.”

A proxy generation power purchase agreement was signed with Allianz Global Corporate & Specialty’s Capital Solutions unit for the electricity generated by Briar Creek. L3Harris Technologies agreed to purchase up to 100MW of clean energy from Elm Branch under a virtual power purchase agreement.

A spokesperson for Lightsource BP said power contracts with Allianz and L3Harris Technologies supported project financing.

McCarthy Building Companies acted as engineering, procurement, and construction contractor for the facilities.

During construction, the project will provide more than 500 local jobs.

Upon completion late this year, the solar projects will offset 370,000mt of carbon emissions annually.