Global renewable energy development company SunEdison has signed an agreement with Dominion to set up a 50-50 joint venture to develop the 210MW Three Cedars solar power plant in Utah, US.
The deal is the expansion of a joint venture which was formed recently between the firms, where by Dominion agreed to invest in the 420MW DC Four Brothers solar project in Utah.
Under the terms of the expanded JV, Dominion will acquire 50% cash equity and 99% tax equity for $320m. A portion of this fund will be used to construct the project.
Power generated from the project will be sold to PacifiCorp (A-/A3), a subsidiary of Berkshire Hathaway Energy, under 20-year power purchase agreements.
Designed to power more than 36,000 homes, the fully financed project is currently under construction and is schedule to be commissioned in mid-2016.
SunEdison placed its 50% share in the Four Brothers and Three Cedars projects on the call right projects list for TerraForm Power.
SunEdison EMEA & Americas executive vice-president Paul Gaynor said: "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."
In addition to creating 250 jobs during construction phase, the Three Cedars project is expected to generate $17m in direct property and income taxes over 20 years.
Separately, Sunedison also agreed to acquire 33% stake in 24 projects, which have combined power generation capacity of 425MW, located in California, Connecticut, Georgia, Indiana, Tennessee and Utah, US, for approximately $300m.
As part of the deal, which is subject to working capital and certain other adjustments, SunEdison will have provision to acquire all or a portion of remaining 67% in the projects from Dominion.
The projects are supported by long-term power purchase agreements with local electricity providers.
Image: SunEdison intends to provide clean energy at a competitive price to Utah homes. Photo: courtesy of maya picture/ FreeDigitalPhotos.net.