Scatec Solar ASA said Jan. 7 that it has entered into financing agreements totallng $157m for construction of the 104-MW (dc) Red Hills solar plant in Utah.
When complete, the Red Hills solar project will be Scatec Solar’s largest developed and constructed project in North America. Total investment for the plant is estimated at $188m — with internet company Google providing tax equity, Prudential Capital Group providing debt financing, and Scatec Solar providing sponsor equity. The power plant will be wholly-owned by a partnership jointly owned by Google and Scatec Solar, which structured and executed the financing for the project. Scatec Solar will manage and operate the plant when it goes into operation.
“We are very pleased to finalize financing for the Red Hills project and start construction on our largest project in North America,” says Scatec Solar CEO Raymond Carlsen.
Google has signed agreements to fund over $1.5bn in renewable energy investments across three continents with a total planned capacity of more than 2.5 GW. This agreement represents the 18th renewable energy investment project for Google.
Prudential Capital Group, a Prudential Financial asset management business, provided term financing for the project. “We have supported Scatec Solar for the last four years through the development process and are excited to team up with Google to execute this transaction,” said Ric Abel, Managing Director, power, Prudential Capital Group’s Energy Finance Group.
The Utah Red Hills Renewable Energy Park will generate around 210 million kilowatt hours (kWh) of electricity per year, which will be fed into the grid under a twenty-year Power Purchase Agreement (PPA) with PacifiCorp d/b/a Rocky Mountain Power, according to the utility’s obligation under the federal Public Utility Regulatory Policies Act. When operational by the end of 2015, the plant will be Utah’s largest solar energy generation facility. The ground-mounted photovoltaic facility is being developed on approximately 650 acres of privately-owned land in Parowan, Utah, and will deploy approximately 325,000 PV modules on a single-axis tracking system and will interconnect to an existing transmission line.
“This investment from industry leaders Google and Prudential Capital Group represents a major step forward in providing Rocky Mountain Power access to the superb solar power potential available in Southern Utah,” said Luigi Resta, Managing Director of Scatec Solar North America.
Scatec Solar is an integrated independent power producer, aiming to make solar a sustainable and affordable source of energy worldwide. Scatec Solar develops, builds, owns and operates solar power plants, and will in 2014 deliver power from 220 MW in the Czech Republic, South Africa and Rwanda. Scatec Solar is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SSO’.