The solar farm is expected to start commercial operation at the end of 2021
Lightsource bp has secured a proxy generation power purchase agreement (pgPPA) for a 153MW Briar Creek solar farm in Navarro County Texas, US.
The pgPPA has been signed with the Capital Solutions unit of Allianz Global Corporate & Specialty (AGCS), in partnership with Nephila Climate.
Lightsource bp said that a pgPPA is a new renewable energy contract structure that is aimed at managing weather related risk.
REsurety, which delivered analysis in support of the transaction, will act as the calculation agent for the life of the contract.
Located about 40 miles (64.3km) south of Dallas, the Briar Creek solar farm is expected to start commercial operation at the end of 2021.
Lightsource bp Americas CEO Kevin Smith said: “This deal is a great example of the evolution of renewable energy products here in the US.
“Innovative power contract structures such as virtual and proxy generation PPA’s are valuable tools we can leverage to meet the needs of our corporate partners, manage risk, and continue to finance and build new solar projects for our low carbon future.”
During the construction phase, the Briar Creek solar farm is expected to create about 250 jobs.
In addition, the solar project is generate $19.7 million in property tax revenue to Navarro County over its life.
In September last year, L3Harris Technologies has entered into an virtual PPA with Lightsource bp to buy 100MW of renewable energy from the Elm Branch solar project.
The agreement enables L3Harris to receive renewable energy certificates from the solar project to reduce GHG emissions from its overall operations.