Prudential Capital buys into 130-MW Tenaska solar project

Oct 29, 2013 - US independent energy company Tenaska said Monday it had agreed to sell a minority stake in a 130-MW solar project in California to Prudential Capital Group for an undisclosed amount.

The Tenaska Imperial Solar Energy Center South, currently being constructed near El Centro in California’s Imperial Valley, is owned by Tenaska Solar Ventures (TSV) -- an affiliate of Tenaska. Once operational, the system will produce enough electricity for about 44,000 local households. Its output will be sold to utility San Diego Gas & Electric Co (SDG&E) under a 25-year power purchase agreement (PPA).

Royal Bank of Canada (TSE:RY) will act as financial advisor to the seller. Following the transaction, Prudential will become an indirect minority owner in the solar station, while Tenaska affiliates will keep their majority shareholding and will manage the project.

The deal is pending regulatory clearance and is seen to be completed in December.

Meanwhile, Tenaska is developing another 150-MW solar project in California. The iTenaska Imperial Solar Energy Center West near El Centro will also operate under a PPA with SDG&E.

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