K Road Power Holdings, LLC (K Road) and SunPower Corp. (NASDAQ: SPWR) announced today that K Road has acquired the 25-megawatt (AC) McHenry Solar Project that SunPower designed and is currently constructing in Modesto, Calif. The project is creating up to 144 construction jobs and injecting approximately $18.7 million into the local economy during construction. SunPower will provide operations and maintenance services when the project begins commercial operation in September.
The solar power generated by the project's solar photovoltaic (PV) technology will be sold to the Modesto Irrigation District (MID) under a 25-year power purchase agreement, helping the utility achieve California's 33 percent renewable portfolio standard. It will generate the equivalent amount of power for approximately 6,000 homes.
"The McHenry Solar Project is a world-class solar project and this acquisition represents K Road's commitment to own and operate a diversified portfolio of solar PV generating assets under long-term supply relationships," said William Kriegel, K Road's chairman and chief executive officer. "We are proud to partner with SunPower to supply clean, renewable electricity to the Modesto Irrigation District, a community owned electric and water utility in California's central valley."
K Roadarranged non-recourse construction and term project financing with a syndicate of three institutions. Union Bank, N.A. (Administrative Agent), Rabobank and CIT Energy acted as Joint Lead Arrangers. "K Road is extremely pleased to have worked with three leading project finance institutions for the McHenry Solar Project. This successful financing underscores the quality of the project and SunPower's technology, the strength of the counterparties, and the professionalism and focused efforts of everyone involved," said K Road's Chief Financial Officer Carl Weatherley-White.
SunPower is installing the SunPower Oasis™ Power Plant product at the site. Oasis is a fully integrated, modular solar power block that is engineered to rapidly and cost-effectively deploy utility-scale solar projects while minimizing land use impacts. Each power block integrates the SunPower® T0 Tracker with SunPower's high efficiency solar panels, pre-manufactured system cabling, the Oasis smart inverter, and the Oasis operating system. SunPower Oasis also features the SunPower advanced Tracker Monitoring and Control System (TMAC™) for wireless control of the power plant. The power block kits are shipped pre-assembled to the job site for rapid field installation, and offer the highest capacity factor and the most reliable long-term performance.
"SunPower technology is fast to install, offers guaranteed performance, and is a competitively-priced choice for power," said Howard Wenger, SunPower president, regions. "We commend K Road for seizing the opportunity to enhance the local economy in Stanislaus County, while helping meet the state's growing energy demand and renewable energy goals."