SunEdison and Dominion have formed a joint venture (JV) for the development of the 265MW Three Cedars solar project in Utah, the US.
The move expands an earlier joint venture recently announced for Dominion’s investment in the 420MW DC Four Brothers solar project in Utah.
As part of the new JV, Dominion will invest close to $320m to acquire 50% percent of the cash equity and 99% of the tax equity in Three Cedars, including provision of funding for construction of the project.
SunEdison intends to provide an additional $80m capital for the solar project through a loan from Deutsche Bank.
Construction on the project is currently underway, with plans to commence operations in mid-2016.
During the construction phase, Three Cedars will create 250 construction jobs within the rural communities of Iron County and generate $17m in direct property and income taxes over 20 years.
SunEdison EMEA & Americas executive vice president Paul Gaynor said: "We are excited to expand our partnership with Dominion to a total of 685 megawatts of solar in Utah.
"Our joint ventures with Dominion demonstrate the market appetite for SunEdison’s high-quality, long-term contracted assets. SunEdison power plants put hundreds of people to work, create real and lasting benefits for local residents, and deliver clean energy to Utah homes at a competitive price."
PacifiCorp will purchase electricity generated at both Three Cedars and Four Brothers solar projects, under separate 20-year power purchase agreements.
Separately, SunEdison and J.P. Morgan Asset Management’s Infrastructure Investments Group have formed a separate strategic partnership to fund renewable energy projects in both operating and construction stages.
The partnership will initially fund the purchase of a 33% stake in Dominion-owned 425MW solar assets.