A total of four systems will be installed, with the generated electricity – around 160 million kilowatt hours annually – to go to SMUD under a 20 year contract. In July, 2010, SMUD signed multiple power purchase agreements with Recurrent Energy under its first feed-in tariff program.
Construction on the first three projects is scheduled for completion early next year, while the fourth system will come online at a later date.
The projects will be financed through a combination of debt and equity. In assistant treasurer to Google, Axel Martinezs blog, it was said that the internet company will supply US$94 million in equity investment to what represents its first utility-scale photovoltaics project.
The remaining funds will come from SunTap Energy RE LLC, a new venture formed today by KKR. Its aim is to invest in U.S. solar projects. According to a statement released, "To establish SunTap, KKR committed $95 million line of equity, a portion of which will be drawn for this investment. The rest of the equity will be invested in similar projects."
The news comes just a day after Recurrent Energy said it had secured $250 million to execute a 200 MW photovoltaics pipeline in Ontario.