US Solar Fund Plc (LON:USF), the recently-listed British investment company, today said it has signed a deal to buy a 128-MW DC solar project in Utah from Longroad Energy Partners for an undisclosed amount.
The acquisition agreement concerns the Milford Solar Project, which has in place a 25-year power purchase agreement (PPA) with an investment-grade off-taker that will become effective in the second half of 2020. The unnamed off-taker will buy the entire output of the plant at a fixed price.
The deal is seen to be completed later this year and will be the first purchase from USF’s identified pipeline of potential investment assets. The company will fund the project with a USD-30-million (EUR 26.8m) cash equity contribution and USD 50 million in non-recourse debt, while the balance will come from tax equity. According to the statement, it has already signed term sheets with two commercial banks and a leading tax equity provider and expects to finalise debt and tax equity financing for the scheme later in 2019. Construction is planned to commence immediately thereafter.
First Solar (NASDAQ:FSLR) will supply modules and is also expected to operate and maintain the power plant under a separate long-term contract.
USF said it continues conducting due diligence on other projects and expects to announce further investments in due course.
(USD 1.0 = EUR 0.8933)
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