The future of the Rio Lago Solar project in Bandera County has been cast into uncertainty following the Chapter 11 bankruptcy filing of its developer, Pine Gate Renewables, according to court records and company statements.
Pine Gate Renewables, a North Carolina based solar and energy storage developer, filed for bankruptcy protection as part of a restructuring process intended to transition ownership of its projects through a court supervised sale, according to filings in the U.S. Bankruptcy Court for the Southern District of Texas.
“To ensure that our projects continue generating renewable energy, we made the strategic decision to commence this court supervised sales process,” Pine Gate Chief Executive Officer Ben Catt said in a company press release.
Pine Gate stated that operations at its solar facilities are expected to continue during the restructuring process.
According to the company, its operational projects are continuing to generate and sell electricity while ownership transitions are pursued through the bankruptcy court.
The Rio Lago Solar project is nearing completion and is expected to begin generating electricity once it is connected to the regional power grid, Pine Gate representatives previously told the Bandera Bulletin.
The facility was developed on private land under a long-term lease agreement between Pine Gate and a private landowner, according to prior statements from the company.
Pine Gate has stated that the project site was selected due to its proximity to existing transmission infrastructure and its suitability for a utility scale solar installation.
To accommodate the project’s output, Bandera Electric Cooperative (BEC) constructed a transmission substation dedicated to the solar farm, cooperative officials previously told the Bulletin.
According to BEC, Pine Gate paid more than $10 million for construction of the substation, and cooperative members are not responsible for those costs.
Despite those assurances, nearby residents have raised objections to the project since early 2024.
Neighbors told the Bandera County Commissioners Court that construction resulted in excessive noise, heavy truck traffic, lighting disturbances and sediment runoff, according to meeting records and prior Bulletin reporting.
Several residents also questioned whether adequate environmental studies were conducted before construction began and expressed concern about the project’s proximity to waterways and its potential impact during ongoing drought conditions, residents said during public comment.
Legal action followed, with neighboring landowners filing suit seeking to halt construction until environmental concerns could be addressed, according to court records. Construction was temporarily paused during the litigation before work resumed.
Pine Gate denied allegations of environmental contamination and stated that the project obtained all required local and state permits.
The bankruptcy filing has raised new concerns among residents regarding whether commitments discussed during settlement negotiations will remain enforceable under future ownership.
Under federal bankruptcy law, a debtor may seek court approval to assume or reject certain executory contracts, according to legal filings and publicly available bankruptcy guidance. If such agreements are rejected, affected parties may be limited to monetary claims rather than enforcement of ongoing obligations.
Bandera County officials have previously stated that the solar project is located on private property and is subject primarily to state level regulation.
Commissioners have said the county’s role is limited to permitting requirements and providing a public forum for comment.
The bankruptcy occurs amid broader debate in Bandera County over large scale energy infrastructure.
In August, the Bandera County Commissioners Court unanimously approved a resolution opposing a proposed high voltage transmission line across the county, citing impacts to private land, wildlife habitat and the local economy.
During that discussion, commissioners referenced previous energy projects, including solar development, as examples of challenges associated with major infrastructure proposals in rural areas, officials said.
According to Pine Gate, the company has developed more than 100 solar facilities nationwide producing more than three gigawatts of installed capacity and maintains a development pipeline exceeding 30 gigawatts.
The company stated that its business has been affected by regulatory changes, capital market conditions and internal operational challenges, prompting a review of financial and strategic alternatives.
Pine Gate stated that it has initiated a competitive sales process that will ultimately result in new ownership of its operating projects and development assets.
As part of that process, the company said it entered into agreements with certain secured lenders who intend to serve as initial bidders for portions of its portfolio, subject to higher or better offers and bankruptcy court approval.
According to court filings and company statements, Pine Gate secured commitments for up to $412 million in financing from certain current lenders to support operations during the bankruptcy proceedings.
The company stated it received interim court approval to access a portion of the financing and will seek final approval to use the full amount.
Pine Gate said the financing, combined with revenue from ongoing operations, will be used to support projects currently under construction and in development.
Pine Gate stated it expects to continue paying employees, honoring post filing obligations to vendors and supporting project partners during the court supervised sales process.
The company stated that ACT Power Services, its wholly owned operations and maintenance subsidiary, is not included in the Chapter 11 filings, though Pine Gate said it is pursuing a separate sale process for that business.
In a press release, Pine Gate stated it expects the court supervised marketing and sales process to conclude in approximately 45 days, though any transaction will remain subject to competing bids and court approval.
Pine Gate has stated that the Rio Lago Solar project is expected to generate approximately $20 million in tax revenue over its lifetime and that no Bandera County water will be used during normal operation of the facility, according to statements previously provided to the Bulletin.
The bankruptcy case remains ongoing. No timeline has been announced for the sale of the Bandera County project.
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