SunEdison, the world’s largest renewable energy development company, will partner with Dominion on the 265 MW Three Cedars solar project in Utah.
The joint venture between SunEdison and Dominion, one of the United States’ largest producers and transporters of energy, marks the expansion of a previously announced joint venture wherein SunEdison would partner with Dominion around the 420 MW Four Brothers solar project, also in Utah.
Both projects are contracted under long-term Power Purchase Agreements (PPA) for 20 years with PacifiCorp, a subsidiary of Berkshire Hathaway Energy, and are now under construction and fully financed, with completion dates expected for mid-2016.
Specifically, Dominion will invest approximately $320 million into the Three Cedars solar project to acquire 50% of the cash equity and 99% of the tax equity, which includes the funding of construction. This brings Dominion’s aggregate investment in the joint venture with SunEdison up to $830 million, acquiring 50% of the cash equity and 99% of the tax equity in both the Four Brothers and Three Cedars solar projects, including funding of construction.
On the other side of the venture, SunEdison’s 50% interest in both projects are on the Call Rights Project List for the company’s yieldco, TerraForm Power.
“We are excited to expand our partnership with Dominion to a total of 685 megawatts of solar in Utah,” said Paul Gaynor, executive vice president of SunEdison EMEA & Americas. “Our joint ventures with Dominion demonstrate the market appetite for SunEdison’s high-quality, long-term contracted assets. SunEdison power plants put hundreds of people to work, create real and lasting benefits for local residents, and deliver clean energy to Utah homes at a competitive price.”
The announcement of the joint venture comes on the same day as SunEdison announced that it, in partnership with J.P. Morgan Asset Management — Global Real Assets, would acquire a 33% interest in a 425 MW portfolio of solar projects currently owned by Dominion.
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