Duke Energy subsidiary Duke Energy Renewables is set to expand its solar portfolio with the acquisition of the Holstein solar project from 8minute Solar Energy.
Financial details of the acquisition have not been divulged by either company.
Located in Nolan County, Texas, the solar facility will be the largest in Duke Energy Renewables’ fleet once the deal is completed.
Duke Energy Renewables president Rob Caldwell said: “We’re pleased to add another Texas project to our growing renewables portfolio.
“The state has some of the best solar resources in the nation, making it a cost-efficient way to meet the energy needs of Texans. Besides clean energy, the project will also bring significant economic benefits to the state.”
The Holstein solar project is spread across nearly 1,300 acres and will feature more than 709,000 solar panels.
8minute Solar Energy was responsible for the development of the project and brought the EPC, operation and maintenance, hedge, tax equity and debt counterparties to it.
Construction works at the site began this year, with completion expected to be completed in 2020. It will have the capacity to generate enough clean energy to power 40,000 homes in the region.
The project is expected to employ 400 workers during the construction period.
8minute Solar Energy president and CEO Tom Buttgenbach said: “There is no question in our mind that solar PV will be the dominant form of energy in Texas in the near future.
“We’re proud to be working with Duke Energy and our other partners on this innovative project to deliver low-cost clean power to Texas’ residents and businesses.”
Upon completion of the project, the majority of the energy generated by the solar facility will be sold through a 12-year term hedge agreement to J. Aron & Company, a subsidiary of Goldman Sachs.
SunTrust provided a tax equity investment to the project, while CIT Group and a consortium of banks are providing a construction loan, letter of credit and term loan facility for the project.
Blattner Energy will be responsible for the design, procurement of inverters, balance of plant systems as well as construction of the project, whilst First Solar will provide O&M services for the project for five years.