SunEdison, Inc., the world’s largest renewable energy development company, announced that they have signed an agreement with Dominion , one of the largest producers and transporters of energy in the U.S., establishing a joint venture (JV) for the Four Brothers, a 420 megawatt (MW) DC, or 320 megawatt AC, solar project in Utah. The project is now under construction and fully financed with an expected commercial operation date of mid-2016. The Four Brothers project is contracted under long-term power purchase agreements for 20 years with PacifiCorp (A-/A3), a subsidiary of Berkshire Hathaway Energy.
Under the terms of the JV, Dominion will invest approximately $500 million to acquire 50 percent of the cash equity and 99 percent of the tax equity in Four Brothers, including funding of construction. SunEdison will contribute the remaining portion of the capital required to complete the project, which it has fully financed through a $150 million four-year term loan with Deutsche Bank.
“We are very pleased to establish a great strategic partnership with Dominion, one of the nation’s largest and most innovative producers of energy in jointly owning the Four Brother project,” said Paul Gaynor, executive vice president of SunEdison EMEA & Americas. “From a financial perspective, the Dominion partnership demonstrates the quality of our project and provides SunEdison and TerraForm Power with a complete solution for the construction and permanent financing of this 420 MW solar facility. This solar project will also bring clean, affordable electricity to Utah residents and businesses while providing attractive returns for its owners. This partnership represents a major investment in the Utah economy, and creates both local jobs and steady income for the state from property and other taxes.”
The Four Brothers project is expected to produce enough electricity to power more than 90,000 homes. As an added benefit, the construction of the solar power project is expected to create an estimated 500 construction jobs within the rural communities of Beaverand Iron Counties and produce $66 million in direct property and income taxes over 20 years.
ST Staff Writers
This post was prepared by Solar Thermal Magazine staff.