SunEdison and Virginia-based energy group Dominion have formed a joint venture for the Three Cedars solar project, a 265 MW PV project in Utah.
The latest collaboration marks an expansion of the companies recently established joint venture for the 420 MW Four Brothers solar project, which is also located in Utah.
Similar to Four Brothers, the Three Cedars project is contracted under long-term power purchase agreements for 20 years with PacifiCorp, a subsidiary of Berkshire Hathaway Energy. Developed by SunEdison, the project is currently under construction, fully financed and expected to begin operation in the mid-2016.
Under the terms of the expanded JV, Dominion will pay $320 million to acquire 50% of the cash equity and 99% of the tax equity in Three Cedars, including funding of construction. SunEdison said it expected to fully finance the $80 million balance of the capital for Three Cedars through a loan from Deutsche Bank and through construction and long-term ownership.
Dominion’s total investment in the venture amounts to some $830 million to acquire 50% of the cash equity and 99% of the tax equity in Four Brothers and Three Cedars, including funding of construction.
SunEdison is expected to sell its 50% interest in both the Four Brothers and Three Cedars projects to its yieldco subsidiary TerraForm Power.
Paul Gaynor, SunEdisons exec VP for EMEA & Americas, said, "Our joint ventures with Dominion demonstrate the market appetite for SunEdison’s high-quality, long-term contracted assets."
The Three Cedars project is expected to produce enough electricity to power more than 36,000 homes.
Separately, SunEdison and J.P. Morgan Asset Management’s Infrastructure Investments Group on Tuesday announced a strategic partnership to buy a major stake in Dominion-owned solar assets. As part of the agreement to fund renewable energy projects in both operating and construction stages, the companies will jointly acquire a 33% interest in a 425 MW AC portfolio of diverse domestic solar assets owned by Dominion.