US-based renewable energy company SunEdison has formed a joint venture (JV) with Dominion Resources for the 420MW Four Brothers solar PV project being developed in Utah.
The firms will pool $650m for the solar power development, with $500m coming from Dominion’s contribution of 50% cash equity and 99% of the tax equity.
SunEdison will provide the remaining $150m for the project under a four-year loan with Deutsche Bank.
The photovoltaic project, which is expected to start commercial operations from mid-2016, has a 20-year power purchase agreement with PacifiCorp (A-/A3), a subsidiary of Berkshire Hathaway Energy.
Once operational, the facility will have the capacity to deliver renewable power for more than 90,000 US households.
SunEdison EMEA and Americas executive vice-president Paul Gaynor said: "From a financial perspective, the Dominion partnership demonstrates the quality of our project and provides SunEdison and TerraForm Power with a complete solution for the construction and permanent financing of this 420MW solar facility.
"This solar project will also bring clean, affordable electricity to Utah residents and businesses, while providing attractive returns for its owners.
"This partnership represents a major investment in the Utah economy, and creates both local jobs and steady income for the state from property and other taxes."
The company also announced successful syndication of a $280m loan for its TerraForm Private Warehouse, which had been formed around the end of June, to hold 521MW of wind energy assets acquired from Atlantic Power.
The seven-year term loan facility carries an interest rate of LIBOR plus 4%, SunEdison said.