April 8 (Renewables Now) - Longroad Energy has secured the needed funds to start building its 215-MW Little Bear Solar complex in California, while also selling 50% stake in it and an under-construction plant in Texas.
The US renewables developer said on Tuesday that Danish pension funds PKA and PenSam have acquired 50% of the equity interests in the Little Bear and Prospero I photovoltaic (PV) projects. The latter is a 379-MW plant that is being built in Texas'Andrews County and is planned to go live in the second quarter of 2020. The project has in place an energy-only power purchase agreement (PPA) with Shell Energy North America. Facebook is its sole tax equity investor.
Longroad Energy purchased the Little Bear project last year from its developer First Solar Inc (NASDAQ:FSLR) and has now obtained USD 333 million (EUR 307.3m) in debt arranged by KeyBanc Capital Markets Inc and Santander Corporate & Investment Banking. US Bank is the sole tax equity investor.
The Little Bear complex will consist of four PV plants in Fresno County. They are planned to enter service by the end of 2020 and sell their output and renewable energy credits (RECs) to community choice aggregator Marin Clean Energy (MCE) under 20-year busbar PPAs.
The given capacity of the plants is in direct current (DC).
Swinerton Renewable Energy has been hired as the engineering, procurement and construction (EPC) contractor for both projects. Longroad noted that since such schemes are considered critical infrastructure, their installation will not be hurt by the restrictions caused by the COVID-19 pandemic.
(USD 1.0 = EUR 0.923)