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.
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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.
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By GlobalData"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.
