July 23 (Renewables Now) - Duke Energy (NYSE:DUK) on Monday announced the acquisition of a 200-MW solar park under construction in Texas from developer 8minute Solar Energy for an undisclosed sum.
The purchase of the Holstein project supports Duke Energy’s goal to own or purchase 8 GW of wind, solar and biomass capacity by 2020, the US utility said. The asset will be added to Duke Energy Renewables’ portfolio and will be the largest one in its fleet once completed.
Being constructed in Wingate, Nolan County, the photovoltaic (PV) park is expected to be switched on next summer, generating enough power for about 40,000 homes. Blattner Energy is taking care of the construction works, which commenced this summer, as well as the facility’s overall design and procurement of inverters. Operations and maintenance (O&M) services will be provided by First Solar (NASDAQ:FSLR) for five years after “substantial completion” has been reached.
The project has in place a 12-year term hedge agreement to sell most of its output to J Aron & Co LLC, a unit of Goldman Sachs (NYSE:GS).
Tax equity investment for the scheme was provided by Sun Trust, while CIT Group and a consortium of banks are providing a construction loan, letter of credit and term loan facility.