Lightsource bp and AEP Energy Partners (AEPEP) have signed a power purchase agreement (PPA) for the 188MWdc Honeysuckle solar project in New Carlisle, Indiana.

AEPEP is a subsidiary of American Electric Power (AEP) and is one of the largest wholesale energy suppliers in the country.

Upon completion, the solar project is expected to generate adequate clean energy to power 27,000 US households and eliminate 204,000 metric tons of CO2 emissions each year.

Lightsource bp will finance, build, own and operate the solar farm and sell the solar energy generated to AEP Energy Partners under a long-term PPA.

The company has commenced the construction at the project site, with commercial operation planned to start in 2024.

It has contracted Inovateus Solar as the construction contractor, with a focus on utilising local labour for the mechanical, electrical and civil work on site.

Lightsource bp Americas CEO Kevin Smith said: “This power purchase agreement is a great example of how energy buyers with sustainability goals such as AEP Energy Partners can work with us to spur the buildout of new solar projects that will improve the health and energy security of communities across America while helping strengthen local economies.

“As the owner and operator of the Honeysuckle solar farm, we look forward to bringing economic and environmental benefits to the region, along with fostering community partnerships.”

The Honeysuckle solar farm is expected to create around 200 direct jobs during construction and hundreds of jobs across the US supply chain.

It would support domestic manufacturers, as it features ultra-low carbon solar panels from First Solar, smart solar trackers from Array Technologies and steel from Nucor.

The project is estimated to bring $250m of new, privately funded renewable energy infrastructure to Indiana

It will also provide a $30m boost to the local community over the project’s life, and additional funding for local schools and other services without a tax increase.

AEP executive vice president and chief commercial officer Greg Hall said: “AEP Energy Partners is proud to provide customers with integrated, carbon-free energy that fulfils their sustainability goals, delivers long-term price stability, and benefits the environment.

“Our partnership with Lightsource bp demonstrates our commitment to the development of new renewable resources that both empower local communities and support a cleaner, brighter energy future.”