Newly established investment company US Solar Fund is to acquire a 128MW photovoltaic project in Utah, in western US.
The purchase of the Milford solar project from Longroad Energy Partners, follows US Solar Fund’s announcement of exclusivity on the project on 14 June 2019.
Longroad has developed over 1GW in the state of Utah.
Milford has a 25-year power purchase agreement (PPA), with an investment-grade offtaker, beginning in the second half of 2020, for all of the electricity produced.
US Solar Fund’s acquisition is expected to be completed later in 2019, along with the financial close of debt and tax equity financing, based on term sheets already executed with two commercial banks and a leading tax equity provider, with construction commencing immediately after that.
The project will be constructed on a fixed-time and fixed-cost basis by a US engineering procurement and construction contractor, using First Solar Series 6 PV modules.
First Solar Energy Services is expected to provide operations and maintenance services under a separate long-term contract.
US Solar Fund chairman Gillian Nott said: “The Milford solar project, with its 25-year contracted cashflows and A-rated offtaker, provides a strong, long-term foundation for USF’s portfolio.
“The company has an extensive pipeline of high-quality assets in which we expect to continue deploying our IPO proceeds in the coming months.”