SunEdison announced to develop a 420MWdc (320MWac) solar project in Utah through establishing a new joint venture with Dominion, one of the U.S.’s largest producers and transporters of energy. The large-scale solar power plant is now under construction and filly financed with an expected commercial operation date of mid-2016. It is expected to generate enough power for more than 90,000 local homes.
Under the terms of the JV, Dominion will invest approximately $500 million to acquire 50% of the cash equity and 99% of the tax equity in Four Brothers, including funding of construction. SunEdison will contribute the remaining portion of the capital required to complete the project, which it has fully financed through a $150 million four-year term loan with Deutsche Bank. The total $650 million financing package fully funds the project for completion and long-term ownership.
SunEdison's 50% interest in the Four Brothers project is on the Call Right Projects List for TerraForm Power, Inc.
The Four Brothers project is contracted under long-term power purchase agreements for 20 years with PAcificCorp, a subsidiary of Berkshire Hathaway Energy. It would generate approximately $40 million dollars of unlevered cash available for distribution (CAFD) to Dominion and SunEdison. Furthermore, the construction will create an estimated 500 jobs within the rural communities of Beaver and Iron Counties and produce $66 million in direct property and income taxes over 20 years.
"From a financial perspective, the Dominion partnership demonstrates the quality of our project and provides SunEdison and TerraForm Power with a complete solution for the construction and permanent financing of this 420 MW solar facility,” said Paul Gaynor, executive vice president of SunEdison EMEA & Americas. “This solar project will also bring clean, affordable electricity to Utah residents and businesses while providing attractive returns for its owners. This partnership represents a major investment in the Utah economy, and creates both local jobs and steady income for the state from property and other taxes."