Shell has signed power purchase agreements (PPAs) for the output from two photovoltaic projects totalling 45MW currently under construction in the US state of Virginia.
The two 10-year PPAs between NextEnergy Capital’s NextPower 3 solar fund and Shell Energy North America are for 90% of the power generated by the Briel Farm and Gardy’s Mill solar plants.
Both will be commissioned by the year-end.
The PPAs comprise the sale of a total of 62 gigawatt-hours of solar electricity annually and an equivalent amount of Renewable Energy Certificates (RECs) for a period of five years.
Shell Energy North America president Glenn Wright said: “At Shell Energy we are dedicated to delivering more and cleaner energy solutions to our customers in a responsible way.
“We’re proud to be working with NextEnergy Capital to enable further development of renewable energy assets that provide the kind of energy solutions that society demands.”
Briel Farm in Henrico County and Gardy’s Mill in Westmoreland County will sell energy and RECs in the wholesale power market operated by PJM Interconnection will also be able to earn from Capacity Market revenues secured via auctions.
The projects form part of the NextPower 3 solar fund’s 250MW portfolio in the US and are connected to Dominion Energy’s distribution network.
NextEnergy Capital managing director and debt financing head Lorena Ciciriello said: “The execution of these long-term contracts is a landmark for NextPower 3 and is all the more significant for having been achieved against the backdrop of Covid-19 and the associated oil shocks.
“Virginia has historically been a coal-centric state and we are delighted that these solar projects will support Dominion Energy Virginia’s 16GW IRP target over the next 15 years.”