Engie North America has entered a power purchase agreement (PPA) with US-based retail company Target for 89MW capacity from the Sand Fork Solar Project in Texas.

During the 15-year PPA, the project is estimated to generate 250,000MWh of energy a year, which is enough to power 250,000 homes in the US for more than a month.

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With a total capacity of 200MW, the Sand Fork Solar Project is expected to commence operation in mid-2021. The project’s remaining capacity will be purchased by an undisclosed corporate customer.

Engie North America CEO Gwenaelle Avice-Huet said: “We truly value the opportunity to support Target in its commitment to source electricity from renewables.

“By serving Target with the Sand Fork Project, we’re proud to help shape a sustainable future for customers and communities and reinforce our ambition to lead the zero-carbon transition.”

The solar project is expected to deliver economic benefits through the creation of local construction jobs and locally sourced goods and services.

Engie aims to build at least 2.5GW of wind and solar capacities in the US and Canada in the next three years.

In April 2017, Engie commenced commercial operations of its 50MW SolaireHolman solar power plant in the US.

Target has also entered a virtual PPA with US independent power company Leeward Renewable Energy. The US retailer has agreed to purchase 79.4MW capacity from the yet-to-be-built Lone Tree wind farm in Bureau County, Illinois. Construction is expected to start this autumn and complete in December next year.

Target currently uses an estimated 22% of electricity sourced from renewable energy.