Principal Solar to buy 73-MW project from Innovative Solar Systems

Principal Solar Inc. (OTC Pink: PSWW) announced March 9 that it will build a 72.9-MW (ac) solar facility in North Carolina, its second major project announced in 2015.

The project will be located in southern Fayetteville, near St. Pauls, and will represent total investment of approximately $154 million. Duke Energy Progress has signed a 10-year power purchase agreement (PPA) to buy energy from the project, Principal Solar said.

On Feb. 4, the company announced plans to build a 78.5-MW (ac) facility in Cumberland County, N.C. This facility will be the largest solar project east of the Rockies, and combined capacity of the two facilities will be 151.4 MW (ac).

“This latest solar facility, our second major announcement in 2015, demonstrates Principal Solar’s momentum and leadership in the solar utility sector, meeting the growing demand for zero-emission, cost efficient energy. Both of these projects have stable sources of revenue and demonstrate the growing importance of solar power to the U.S. energy industry,” said Michael Gorton, Chairman and CEO of PSI. “Principal Solar is poised for further growth in 2015. We have under evaluation a pipeline of viable, well-developed solar projects, and have a clear pathway to profitability.”

The Principal Solar team has more than 200 years of cumulative energy experience with leading utilities such as TXU Energy. Gorton has significant energy industry expertise, and has founded successful businesses in healthcare, IT and telecommunications.

PSI acquired the right to develop the Fayetteville project from Innovative Solar Systems LLC of Asheville, NC. The acquisition of the project is expected to close no later than Aug. 30, 2015, with construction to be completed in early 2016.

Innovative Solar Systems has in recent months won approvals from the North Carolina Utilities Commission on hundreds of MWs of mostly large solar projects like this one.

Principal Solar is a publicly traded solar power company that is building a utility-scale operation. It currently has more than 150 MW (ac) of power contracted to a major utility via long-term PPAs, and a growing pipeline of high-quality projects under consideration.

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.