SunEdison has announced it will partner with Dominion to create a joint venture around the 420 MW Four Brothers solar project in Utah.
The project is currently being developed and constructed by SunEdison, and is expected to become fully operational by mid-2016. Under the terms of the joint venture between SunEdison and Dominion, Dominion will invest approximately $500 million to acquire 50% of the cash equity of the Four Brothers project, and 99% of the tax equity, including funding of construction. SunEdison will contribute the remainder of the capital requited to complete the project, which it had already fully financed through a $150 million, four-year term loan with Deutsche Bank.
“We are very pleased to establish a great strategic partnership with Dominion, one of the nation’s largest and most innovative producers of energy in jointly owning the Four Brother project,” said Paul Gaynor, executive vice president of SunEdison EMEA & Americas.
“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 420 MW 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 Four Brothers project is already contracted under a long-term Power Purchase Agreement for 20 years with PacifiCorp, a subsidiary of Berkshire Hathaway Energy. Upon completion, the project is expected to produce the equivalent of enough electricity to power more than 90,000 local homes, and has already provided an estimated 500 construction jobs within the rural communities of Beaver and Iron Counties.