A Sydney-based investor in solar technology and plant has acquired a 200MW solar project worth US$270 million (A$336 million) to be built in the United States.
New Energy Solar will invest an initial US80 million (A$99.6 million) into the project, which will be operational by late 2019.
When complete, the solar plant is expected to generate more than 450,000MW of electricity annually – equivalent to displacing 245,000 tons of carbon dioxide emissions every year.
The project has executed a 20-year power purchase agreement (PPA) with an investment grade utility off-taker, which commences in mid-2020.
Construction is expected to be complete six months before the PPA term commences, during which time it plans to sell electricity into the wholesale electricity market.
“After successfully completing the capital raising and ASX listing last year, it has been rewarding to move quickly and invest in this world-class solar project, which adds both significant scale and contracted cash flow to our portfolio,” said John Mart, CEO for New Energy Solar.
“Importantly, the project’s combination of large-scale and a high-quality solar resource almost doubles the environmental impact of the fund.”
Established in 2015, New Energy Solar has raised more than A$500 million from retail and institutional investors, acquiring a portfolio of world-class solar power plants, including opportunities in Australia and the US.