The clean energy infrastructure business of asset manager Capital Dynamics has entered into a development partnership with 8minute Solar Energy for a 400MW solar plus storage project in the US state of California.
Financial details of the equity financing and acquisition of the Eland solar and storage centre were not disclosed.
The project, which is located in Kern County, features 300MW of storage capacity.
A long-term power purchase agreement has been secured to serve the power needs of The Los Angeles Department of Water and Power.
Initial construction, which has commenced, will proceed in two phases with the goal of starting operations in 2022 and coming fully online in 2023.
8minute will continue to develop the project and will also oversee construction.
The developer also has a right to re-purchase a portion of the project at commercial operation.
The project is expected to create 700 jobs during a 12-month construction period.
8minute president and chief executive of Tom Buttgenbach said: “Capital Dynamics brings tremendous expertise and significant financial resources for construction to the table, which makes them excellent long-term owners and partners.
“Eland is a breakthrough project, setting records for low-cost solar, and incorporates a large battery energy storage center that demonstrates solar’s ability to power California’s vibrant and growing economy 24/7.
“We look forward to this partnership in order to meet the future energy needs of the city of LA with clean and affordable power from our new generation solar power plants.
“We are excited to build on our strong relationship with Capital Dynamics and their shared vision for the Eland project.”
Capital Dynamics managing director on the clean energy infrastructure team Benoit Allehaut said: “We are delighted to partner with 8minute Solar Energy on Eland. Once operational, the solar project will be the second largest in the US.
“This is our fourth solar project delivering clean and affordable power to LADWP. Eland will also be the third hybrid solar plus storage plant in our portfolio, and we are very happy we will have 8minute Solar Energy as long-term equity partner.
“Tom runs the uncontested leading solar developer in the country, and it is a privilege to work together on this project.”