Longueuil, Quebec: Innergex Renewable Energy Inc. announced July 2 the acquisition of a 250MWac/315 MWdc photovoltaic solar project located in Winkler county, west Texas, from Longroad Energy Partners, LLC.
Full notice to proceed with construction was issued and commercial operation should be reached in the third quarter of 2019. Financial close for the project's non-recourse construction, term debt and tax equity financing was also reached on July 2.
The Phoebe photovoltaic solar project consists of First Solar Series 6 thin film modules that will be operated by the panel manufacturer under a 5-year operation and maintenance contract. Average annual power generation is expected to reach 738,000 MWh (33.7% AC net capacity factor). The facility will sell 100% of its output to the ERCOT power grid and receive a fixed price on 89% of its energy produced under a 12-year power purchase agreement with Shell Energy North America, commencing in July 2019. The remainder of the project's output will receive a merchant market price. The facility will also benefit from the sale of Renewable Energy Certificates in the merchant market to boost its revenues.
Total construction costs are estimated at $524 million (US$397 million) and will be partly financed in priority through a $385 million (US$292 million) construction and long-term project financing led by the Energy Finance unit of CIT Group Inc. Innergex will fund its $139 million (US$105 million) equity commitment after the debt is fully drawn. This obligation will be supported by the issuance of a letter of credit.
One day after, Innergex Renewable Energy also announced having completed its previously announced joint venture partnership with Energia Llaima, in Santiago, Chile, for a 50% ownership in the company.
Energia Llaima owns a major interest in the 12 MW Energía Coyanco hydro project and in the 34 MW solar thermal facility Pampa Elvira. Energía Llaima's development portfolio includes two hydro projects in advanced stage of development, the 109 MW Central Frontera and the 16 MW Central El Canelo, as well as other early development stage projects.
On July 5 Innergex announced acquisition of the 140 MW Duqueco hydro project in Chile. The Duqueco hydro project consists of two hydro facilities commissioned in 2001, Peuchen (85 MW) and Mampil (55 MW), located on the Duqueco River, 60 km east of the city of Los Angeles, Chile. The Peuchen plant has a reservoir upstream with a 4-hour regulation at full capacity and up to 12-hour regulation at partial capacity, which also benefits Mampil. The aggregated average annual power generation is expected to reach over 350,000 MWh. Electricity produced by these hydro facilities is sold under power purchase agreements (PPAs) at fixed prices until 2020 and on the spot market.