SunEdison lines up financing for 16-MW Arizona solar project

The North American Development Bank (NADB) and SunEdison LLC closed a $35m loan for the construction of a 16-MW (DC) solar park at Davis-Monthan Air Force Base (DMAFB), located southeast of Tucson, Ariz.

This electricity will be purchased by DMAFB under a 25-year Power Purchase Agreement, the parties said April 10. Tucson Electric Power (TEP) will acquire the Renewable Energy Credits (RECs) generated by the plant under a 20-year Master REC Agreement, aiding the utility in its compliance with Arizona’s Renewable Energy Standard.

The project will be constructed using 57,000 MEMC Silvantis solar modules mounted on single-axis trackers that will automatically follow the path of the sun during the day. The project will interconnect to the DMAFB transmission system onsite and is expected to generate enough energy to offset about 50% of DMAFB’s electrical needs in its first year of operation. The project is due to come online in the fourth quarter of 2013.

“This project will add to the 784 megawatts of installed renewable energy capacity that the Bank has helped develop and finance in the U.S.-Mexico border region,” stated NADB Managing Director Geronimo Gutierrez. “The pipeline of projects under development by NADB continues to include renewable energy, along with transportation-related projects and basic water and wastewater infrastructure.”

The solar park will be built on approximately 144 acres and will be constructed pursuant to an engineering, procurement and construction (EPC) contract provided by SunEdison.

“Adding distributed generation solar to the energy mix at Davis-Monthan Air Force Base is an economically responsible way to take advantage of public land to produce clean energy and reduce electricity expenses for the Base,” said Attila Toth, General Manager of North America Distributed Generation Solutions for SunEdison.

SunEdison, a subsidiary of MEMC Electronic Materials (NYSE: WFR), is a global leader in delivering solar power. As of the end of 2012, SunEdison had interconnected over 989 MW of solar electricity throughout the world.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.