Capital Dynamics, an independent global private asset management firm, announced that its Clean Energy Infrastructure (CEI) business has entered into a development partnership with 8minute Solar Energy through the equity financing and acquisition of the breakthrough Eland Solar & Storage Center, a 400-MWac solar and storage center project located in Kern County, California.
The project features a 300-MW/1200-MWh energy storage facility, making it one of the largest in the world and the record low-cost for this type of facility. Financial details of the transaction were not disclosed.
“We are delighted to partner with 8minute Solar Energy on Eland. Once operational, the solar project will be the second largest in the U.S.,” said Benoit Allehaut, managing director of Capital Dynamics’ Clean Energy Infrastructure team. “This is our fourth solar project delivering clean and affordable power to LADWP. Eland will also be the third hybrid solar + storage plant in our portfolio, and we are very happy we will have 8minute Solar Energy as long-term equity partner. Tom runs the uncontested leading solar developer in the country, and it is a privilege to work together on this project.”
A long-term PPA has been secured to serve the power needs of The Los Angeles Department of Water and Power (LADWP), which is the largest municipal utility in the United States. Initial construction, which has commenced, will proceed in two phases with the goal of starting operations in 2022 and will reach full operational capabilities in 2023. 8minute will continue to develop the project in all respects and will also oversee construction. 8minute also has a right to re-purchase a portion of the project at commercial operation.
The Eland Solar and Storage Center is located 70 miles north of Los Angeles close to California City. The project is expected to create 700 jobs during a 12-month construction period.
“Capital Dynamics brings tremendous expertise and significant financial resources for construction to the table, which makes them excellent long-term owners and partners,” said Tom Buttgenbach, president and CEO of 8minute. “Eland is a breakthrough project, setting records for low-cost solar, and incorporates a large battery energy storage center that demonstrates solar’s ability to power California’s vibrant and growing economy 24/7. We look forward to this partnership in order to meet the future energy needs of the city of LA with clean and affordable power from our new generation solar power plants. We are excited to build on our strong relationship with Capital Dynamics and their shared vision for the Eland Project.”
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