sPower acquires 63 MW North Carolina solar portfolio

The FLS North Carolina Solar 1 portfolio acquired by sPower is operating under 15 year PPAs, signed with Duke Energy Carolinas and Duke Energy Progress. sPower has purchased the portfolio of solar projects outright, which are valued at US$100 million. The various projects commenced commercial operation in 2013 and 2014.

sPower CEO Ryan Creamer said it was important that the company sought out a partner that itself drove growth within the U.S. solar industry.

“FLS Energy is clearly amongst the most knowledgeable and successful solar energy companies on the east coast,” said sPower’s Creamer. “We look forward to a long and mutually-beneficial relationship.”

CohnReznick Capital Markets Securities (CRCMS) advised both firms on the sale of the solar portfolio. The investment banking services firm said that the deal should deliver growth to the U.S. east coast solar industry.

North Carolina is certainly proving to provide fertile turf for U.S. solar developers of late. CRCMS Managing Director Conor McKenna attributes this to a combination of drivers.

“North Carolina has readily available PPA agreements and state based incentives that are attractive to solar developers,” McKenna told pv magazine. “As a result, there is a growing comfort in the state for capital participation creating a more liquid market.”

FLS Energy CEO Dale Freudenberger said that the cash generated by the sale would help the company create “permanent North Carolina clean energy jobs.”

“FLS is pleased with the sale of the equity interest in these assets based on sPower’s proven abilities as a quality independent power provider and leader in the solar industry,” said Freudenberger. “We expect additional strategic opportunities for our organizations to work together in the near future.”

sPower has its headquarters in Salt Lake City and operates more than 130 utility and distributed units of generating capacity across the North America and the UK. Stoel Rives assisted sPower with the acquisition negotiations and documentation.