Canada’s Innergex Renewable Energy has acquired the Phoebe photovoltaic solar project in Winkler County, Texas, US, from Longroad Energy Partners.
Innergex noted that a full notice to proceed with construction has been issued, with the commercial operation expected in the third quarter of next year.
With an installed capacity of 250 MW AC/315MW DC, the Phoebe solar facility’s average annual power generation is expected to reach 738,000MWh, which will be enough to power about 53,000 Texas households.
The energy generated from the facility will be supplied to the ERCOT power grid.
It will receive a fixed price on 89% of its energy produced under a 12-year power purchase agreement (PPA) with Shell Energy North America, due to commence next July.
Total construction costs are estimated at $397m, to be partially financed in priority through a $292m construction and long-term project led by the Energy Finance unit of CIT Group.
Innergex Renewable Energy president and CEO Michel Letellier said: “With this acquisition, we are in a good position to provide peak renewable power to the ERCOT market, complementing wind energy production and diversifying our footprint in the state.
“This acquisition brings us closer to exceeding our goal of achieving net 2,000MW by 2020 and we intend to continue pursuing development and acquisition opportunities of high-quality renewable energy assets to further generate value for our stakeholders.”
Additionally, the Canadian firm also reached financial close for the project’s non-recourse construction, term debt and tax equity financing.
Innergex will fund its $105m equity commitment after the debt is fully drawn. Wells Fargo has committed to provide the tax equity financing.
The Phoebe project comprises First Solar Series 6 thin film modules that will be operated by the panel manufacturer under an operation and maintenance contract for five years.