Renewable energy development company SunEdison and Dominion have signed a joint venture agreement to develop the 420MW DC Four Brothers solar project in Utah, US.
Under the deal, Dominion will acquire 50% cash equity and 99% tax equity for $500m. A portion of this fund will be used to construct the project.
SunEdison will provide the remaining capital for the $650mproject.
Planned to be commissioned in mid-2016, the power plant is expected to serve more than 90,000 homes.
Power generated from the facility will be sold to Berkshire Hathaway Energy’s subsidiary PacifiCorp under a 20-year power purchase agreements.
The project is expected to create 500 jobs during construction phase, and generate direct property and income taxes of $66m over 20 years. It will provide Dominion and SunEdison with around $40m of unlevered cash available for distribution (CAFD).
SunEdison Europe, the Middle East and Africa, and Americas executive vice-president Paul Gaynor said: "This solar project will 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 company plans to place its 50% stake in the project on the call right projects list for TerraForm Power.