Duke Energy acquires 200 MW solar project in USA
Duke Energy Renewables, a subsidiary of Duke Energy, is expanding its solar energy portfolio by acquiring the 200-MW Holstein solar project from 8minute Solar Energy. The project, located in Nolan County, Texas, will be the largest solar power facility in Duke Energy Renewables’ fleet once completed.
The 200 MW project will contain over 709,000 solar panels across approximately 1,300 acres in Wingate, Texas. Construction began in the summer of 2019 and is expected to be completed in the summer of 2020. The Holstein solar project will power the equivalent of 40,000 homes.
Duke Energy Renewables acquired the project from 8minute Solar Energy, a leading developer of utility-scale solar projects. 8minute Solar Energy led the development of the project and brought the EPC, operation and maintenance (O&M), hedge, tax equity and debt counterparties to the project.
Much of the energy generated from the Holstein solar project will be sold through a 12-year term hedge agreement to J. Aron & Company LLC., a subsidiary of Goldman Sachs. This is the first Duke Energy Renewables solar project to utilize a hedge agreement.
SunTrust is providing a tax equity investment in the project. CIT Group and a consortium of banks are providing a construction loan, letter of credit and term loan facility for the project.
8minute Solar Energy engaged several advisory firms to close the transaction, including Snapper Creek Energy Advisors as the hedge advisor, CCA Capital providing tax equity and M&A advisory, and Norton Rose Fulbright, Orrick, Herrington & Sutcliffe, and Stahl, Davies, Sewell, Chavarria & Friend as legal counsel. The lenders were represented by Winston & Strawn, SunTrust was represented Akin Gump Strauss Hauer & Feld LLP, and Duke Energy Renewables was represented by Troutman Sanders and Duggins Wren Mann & Romero.
The facility’s design, procurement of inverters, balance of plant systems and construction of the project are being performed by Blattner Energy. First Solar will provide O&M services for the project for five years beginning when the project has reached substantial completion, which is estimated to be in the summer of 2020.
