Ground broken on Red Horse 2 wind and solar project in Arizona

D. E. Shaw Renewable Investments LLC (DESRI) said Jan. 9 that ground has been broken at the site of the Red Horse 2 wind and solar project in Cochise County, Arizona.

Torch Renewable Energy (TRE) began developing the 71-MW (ac) project in 2011 and secured a 20-year power purchase agreement (PPA) with Tucson Electric Power (TEP) in February 2013. DESRI provided development funding to the project in December 2013 and jointly completed its development with TRE. DESRI subsequently acquired the project in August 2014 with senior debt from Santander Bank N.A. and Banco de Sabadell S.A., alongside a commitment for tax equity financing from U.S. Bank.

Swinerton Renewable Energy is designing and constructing the project, which will combine Vestas V110 wind turbines with Jinko Solar photovoltaic (PV) panels and Advanced Energy inverters. Swinerton will also provide ongoing operations and maintenance services to the facility once built.

“Red Horse 2 is one of the first combined wind and solar projects in the U.S., and we are proud to add it to the DESRI portfolio. We appreciate all of the hard work of our many partners in helping us to reach this important milestone,” said Bryan Martin, a managing director and head of U.S. Private Equity for the D. E. Shaw group.

Jorge Camina, Managing Director at Santander, said: “Santander is pleased to offer its extensive capabilities in the U.S. renewable energy market to DESRI in support of the Red Horse 2 project. We look forward to a fruitful partnership on this and other projects in future years.”

Enrique Castillo, Structured Finance Director of Banco Sabadell for the Americas, said: “We are excited about being part of this outstanding group of professionals that made the Red Horse 2 project possible and thrilled to help our clients succeed.”

David G. Hutchens, President and CEO of TEP, said: “We are excited to see Red Horse 2 start construction. TEP has enjoyed working with the development teams at Torch and DESRI to bring this world-class project to fruition.”

Jon Kilberg, CEO of Torch, said: “We’ve been delighted to work again with the forward thinking leadership team at Tucson Electric Power, including Dave Hutchens and Carmine Tilghman, Senior Director of Wholesale, Fuels and Renewable Resources. Their vision has allowed Torch and DESRI to develop what will be the largest hybrid project in Arizona at competitive power prices, which we anticipate will be good for the consumer and the environment.”

D. E. Shaw Renewable Investments and its affiliates acquire long-term contracted renewable energy assets in North America. DESRI is a member of the D. E. Shaw group, a global investment and technology development firm with more than 1,000 employees, approximately $34bn in investment capital as of October 1, 2014, and offices in North America, Europe, and Asia.

Torch Renewable Energy is a leading developer of renewable energy projects focused primarily in the Southwestern United States. Torch currently has more than 12 projects in various stages of development in 7 U.S. states, representing greater than 2,000 MW of potential capacity.

Tucson Electric Power provides safe, reliable electric service to approximately 414,000 customers in southern Arizona. TEP and its parent company, UNS Energy, are subsidiaries of Fortis, which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. 

Santander Bank is one of the largest retail banks in the United States by deposits. Its main corporate offices are in Boston and it operates principally in Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island.

Banco Sabadell, established in 1881, is the fourth largest banking group in Spain (by assets).

With over 3 GW of power generation and 630 MW of solar power expertise, Swinerton Renewable Energy offers turnkey solar power solutions for utility-scale and distributed-generation projects.

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.