The Red Horse 2 wind and solar project in Arizona, funded by D. E. Shaw Renewable Investments, L.L.C. (DESRI), has been started construction this month. Torch Renewable Energy (TRE) began developing the 71-MW (AC) project in 2011 and secured its power purchase agreement (PPA) in February 2013. DESRI subsequently acquired the project in August 2014 with senior debt from Santander Bank, N.A. and Banco de Sabadell, S.A., alongside a commitment for tax equity financing from U.S. Bank.
DESRI provided development funding to the project in December 2013 and jointly completed its development with TRE over the subsequent eight months. Swinerton Renewable Energy is designing and constructing the project, which will combine Vestas V110 wind turbines with Jinko Solar PV panels and Advanced Energy inverters. Swinerton will also provide ongoing operations and maintenance services to the facility once built. The project has a 20-year PPA with TEP.
“Red Horse 2 is one of the first combined wind and solar projects in the U.S., and we are proud to add it to the DESRI portfolio,” said Bryan Martin, a managing director and head of U.S. Private Equity for the D. E. Shaw group.
Jon Kilberg, CEO of Torch, said, “We’ve been delighted to work again with the forward thinking leadership team at Tucson Electric Power, including Dave Hutchens and Carmine Tilghman, Senior Director of Wholesale, Fuels and Renewable Resources. Their vision has allowed Torch and DESRI to develop what will be the largest hybrid project in Arizona at competitive power prices, which we anticipate will be good for the consumer and the environment. DESRI has been a great partner in this process, helping us with capital and expertise to get Red Horse 2 across the finish line.”