US Solar Fund (USF) has completed the acquisition of the 128MW direct current Milford solar project from Longroad Energy Partners and also achieved the financing of 100% of the cash equity interests in the project.
USF noted that it will fund the acquisition and construction of Milford with an initial equity of $30m along with non-recourse construction debt, which will be offered by Zions Bancorporation and KeyBank.
WellsFargo has agreed to provide tax equity funding for the solar project after it achieves construction milestones.
Longroad Energy Partners chief investment officer Charles Spiliotis said: “We are pleased to have partnered with NESM and USF to bring this project to fruition. NESM is a world-class investment manager and Milford Solar’s attractive profile is a great match for USF’s goals.”
Located in Beaver County, which is six miles north of Milford, the project will sell power and renewable energy credits to Berkshire Hathaway Energy subsidiary PacifiCorp.
Construction works at the site will begin immediately and the solar facility is expected to begin its commercial operations before the end of 2020.
Once operational, Milford is expected to generate more than 277,500MWh of clean electricity annually, which will be sufficient to power 31,000 homes in the region.
In addition to clean energy, Milford will have the capacity to offset approximately 235,000t of carbon emissions.
USF chairman Gillian Nott said: “The 25-year PPA with PacifiCorp will provide stable long-term infrastructure cash flows to our investors, something that is particularly pleasing in this low interest rate environment. The Board looks forward to the Investment Manager’s continued pace in deploying our IPO proceeds.”
Milford Solar Project will be equipped with solar panels supplied by First Solar. It will be built by McCarthy Building Companies on a fixed-time and fixed-cost basis.
Additionally, First Solar Energy Services will offer operations and maintenance services under a separate long-term contract.