Sempra Renewables is developing and investing in renewable energy generation projects that have planned in-service dates through 2017, said parent Sempra Energy in its Aug. 4 quarterly Form 10-Q report to the SEC.
These projects require construction financing which may come from a variety of sources including operating cash flow, project financing, funds from the parent, partnering in joint ventures, and other forms of equity sales, including tax equity. The varying costs of these alternative financing sources impact the projects’ returns.
The projects are:
- Apple Blossom Wind Project – In July 2016, Sempra Renewables acquired the Apple Blossom Wind project, a 100-MW wind farm currently under development in Huron County, Michigan. Michigan utility Consumers Energy has contracted for all of the energy generated from the project for 15 years upon project completion, which is expected by the end of 2017.
- Black Oak Getty Wind Project – In March 2015, Sempra Renewables acquired the Black Oak Getty Wind project, a 78-MW wind farm currently under construction in Stearns County, Minnesota. Sempra expects the project to be fully operational by the end of 2016. Minnesota Municipal Power Agency has contracted for the energy generated from the project for 20 years upon project completion.
- Copper Mountain Solar – Copper Mountain Solar is a photovoltaic facility operated and under construction by Sempra Renewables in Boulder City, Nevada. When fully developed and constructed, the project will be capable of producing up to approximately 550 MW of solar power, with 458 MW currently in operation, of which Sempra Renewables has 50% ownership of 400 MW through joint venture partnerships, and 100% ownership of the 58-MW facility. It is being developed in multiple phases as power sales become contracted. In July 2014, Sempra Renewables signed a 20-year power purchase agreement (PPA) with Southern California Edison for all of the solar power from Copper Mountain Solar 4 beginning in 2020. The California Public Utilities Commission approved the PPA in March 2015. Sempra expects Copper Mountain Solar 4 to be in service by the end of 2016. Sempra U.S. Gas & Power will market the output from Copper Mountain Solar 4 before the start of the Southern California Edison contract term. Copper Mountain Solar 4 will total 94 MW when completed.
- Mesquite Solar – Mesquite Solar is a photovoltaic facility under construction by Sempra Renewables in Maricopa County, Arizona. If fully constructed, the project will be capable of producing up to approximately 700 MW, with 150 MW currently in operation in a joint venture with Consolidated Edison Development (Mesquite Solar 1). In June 2015, Sempra Renewables signed a 20-year power sale agreement with Southern California Edison for 100 MW from the second phase of Mesquite Solar (Mesquite Solar 2). The California PUC approved the PPA in December 2015. In July 2015, Sempra Renewables signed a 25-year PPA with the Western Area Power Administration on behalf of the U.S. Department of the Navy for 150 MW from the third phase of Mesquite Solar (Mesquite Solar 3). Sempra expects Mesquite Solar 2 and 3 to be in service by the end of 2016.