SunEdison bags 14MW Nevada PPA
SunEdison has signed a 20-year power purchase agreement for a 14MW PV plant it will build and operate for the Southern Nevada Water Authority, which delivers water to the Las Vegas Valley.
The deal represents the first PPA SunEdison has announced since its yieldco spin-off, TerraForm Power, was launched onto the public markets last week.
SunEdison will develop, construct, own and operate the 14MC (ac) plant for the SNWA in Clark County, southern Nevada, hewing to its plan of retaining ever more generation assets on its own balance sheet.
Construction will begin next year, with commercial operation expected by late 2015.
By locking in a fixed power price over the next two decades, the PPA will act as a hedge against future energy price increases for the SNWA, which is a significant consumer of electricity.
The PPA will boost to 18% the amount of renewables in the SNWA’s energy mix. “When compared with traditional power production from fossil fuels, this solar facility will also save more than 100 million gallons of water,” says SNWA general manager John Entsminger.
Listed at $25 per share, TerraForm Power has seen its market valuation soar by 33% since its 18 July initial public offering.
TerraForm was seeded with 808MW of operational PV capacity by majority shareholder SunEdison, most of it utility-scale, including a stake in the recently completed 266MW Mt Signal project in California.
TerraForm also has Right of First Offer on 1.1GW of projects currently owned or being developed by SunEdison, and SunEdison is expected to continue developing projects and dropping them down into the yieldco over the coming years.