sPower announced Jan. 28 a non-exclusive joint development agreement with Hecate Energy to develop and own/operate solar photovoltaic (PV) projects.
The first joint initiative is the sale to sPower of a 162-MW (ac) portfolio comprised of three projects – Beacon 1, Beacon 3 and Beacon 4. These utility-scale projects, located near Mojave in Kern County, California, will be designed and built by Hecate, then jointly owned and operated by sPower and Hecate.
“sPower’s strength comes from delivering on what we promise. We take an entrepreneurial approach that seeks out projects that are not only environmentally and economically feasible, but also move our industry forward – like the Beacon projects,” said Ryan Creamer, sPower’s CEO. “We are excited about the collaborative endeavor with Hecate Energy to develop renewable assets that will bring the nation closer to achieving energy independence.”
Groundbreaking is scheduled for the third quarter of 2015, with commercial operation of these projects in the March-July 2016 period. The Beacon projects have 25-year power purchase agreements (PPAs) with the Los Angeles Department of Water and Power, the largest municipal water and power utility in the nation.
“sPower and Hecate Energy have deeply experienced management teams, each with more than 20 year track records of success in the energy sector,” said Chris Bullinger, president of Hecate Energy. “We look forward to the opportunity to team with sPower on other important solar projects in the future.”
Headquartered in Salt Lake City, Utah, with offices in San Francisco and New York City, sPower (also called Sustainable Power Group) is a leading independent power producer that owns and/or operates more than 130 utility and distributed electrical generation systems across the United States. With greater than a gigawatt between construction and pipeline, sPower is actively buying renewable assets in any stage of development in North America and the United Kingdom. sPower is a portfolio company of Fir Tree Partners, a leading global investment fund with more than 20 years of investing history and approximately $13bn of capital under management.
Hecate Energy is a leading developer, owner and operator of power plants in North America and internationally. The company specializes in solar and wind power, natural gas plants and energy storage, unearthing creative approaches to structuring PPAs and financing power projects both in the United States and abroad.