Eolus has signed an agreement to sell a solar and battery storage project located in Arizona, US.
The project is a mid-stage development asset that is expected to have an initial aggregate capacity of 750 MWac solar photovoltaic generation and battery storage capacity. Commissioning is currently planned for 2025.
The buyer is a US-based portfolio company backed by a large publicly traded global private equity investment firm. They have acquired all the membership units in the project company from Eolus and has also signed an agreement for Eolus to provide certain development services to the project through commercial operation.
Eolus has received an initial payment of US$12 million and will be paid additional purchase price instalment payments depending upon the progress of the project and the fulfilment of certain milestones.
The milestones involve advancing the development of the project and preparing it for financing and construction. A significant portion of the total consideration will be paid to Eolus upon commencement of construction of the project.
At this stage, the total purchase price is estimated to be between US$104 and US$190 million and will be paid throughout 2023-2025. The buyer’s continued development and dimensioning of the project will influence the amounts of further payments to Eolus within the above-mentioned range.
The project is Eolus’ third to be sold in the US.
“This project is Eolus’ first sale of a combined solar and storage project, and it has the potential to generate more than 1000GWh of dispatchable clean energy per year. We are excited to enter into our first agreement with this new customer,” said Hans-Christian Schulze, Country Manager of Eolus North America.