Innergex Renewable Energy has acquired a 250-MWac/315-MWdc solar PV project located in Winkler County, Texas, from Longroad Energy Partners. Full notice to proceed with construction was issued today and commercial operation should be reached in the third quarter of 2019. Financial close for the project’s non-recourse construction, term debt and tax equity financing was also reached today.
“We are very much looking forward to breaking ground on our largest solar project to date. I am confident that our experience and expertise in developing and managing renewable energy projects will ensure the successful completion of the Phoebe project and demonstrate our commitment to growing our diversified portfolio of assets,” said Michel Letellier, President and Chief Executive Officer of Innergex. “With this acquisition, we are in a good position to provide peak renewable power to the ERCOT market, complementing wind energy production and diversifying our footprint in the state. This acquisition brings us closer to exceeding our goal of achieving net 2,000 MW by 2020 and we intend to continue pursuing development and acquisition opportunities of high-quality renewable energy assets to further generate value for our stakeholders.”
The Phoebe solar project in West Texas will use First Solar Series 6 thin-film modules that will be operated by the panel manufacturer under a five-year operation and maintenance contract. The Phoebe solar facility will sell 100% of its output to the ERCOT power grid and receive a fixed price on 89% of its energy produced under a 12-year power purchase agreement with Shell Energy North America, commencing in July 2019. The remainder of the project’s output will receive a merchant market price.
The total project cost is estimated at $397 million and will be partly financed in priority through a $292 million construction and long-term project financing led by the Energy Finance unit of CIT Group. Innergex will fund its $105 million equity commitment after the debt is fully drawn.
News item from Innergex