Nov 29 2013
Algonquin Power & Utilities Corp. today announced that a subsidiary of APUC's renewable power generation business Algonquin Power Co. ("APCo") has entered into an agreement with Valos Solar Ventures LLC to purchase and complete construction of a 20 MWac Solar Facility located near Bakersfield, California.
Following commissioning, scheduled for Q4 2014, Bakersfield Solar is expected to generate 53.3 GWh of energy per year and will have 20 year warranties on panels and inverters. Bakersfield Solar, located in Kern County, California will sell its energy to PG&E pursuant to a 20 year power purchase contract. Consideration for the acquisition of the development rights from the original developer of the Bakersfield Solar project is approximately $2.2 million. Total capital cost to construct the project, including the acquisition of the land on which the project is located, is expected to be approximately $58.5 million.
Permanent financing of the Bakersfield Solar project is expected to be consistent with APUC's targeted investment grade consolidated capital structure. Consistent with financing structures utilized for U.S. based renewable energy projects, it is anticipated that approximately 45% of the construction costs of Bakersfield Solar will be funded by certain tax equity investors.
"We are very pleased to announce our second solar generation facility as we continue to execute on our stated plan to expand our investment in this modality of power generation," commented Chief Executive Officer Ian Robertson. "We believe that solar power generation is emerging as an important part of the electrical generation mix for the years to come and from a diversification perspective, its low year-over-year production volatility and low variability correlation with our other generation technologies is a key element in continuing to further de-risk our portfolio."
Source: http://www.algonquinpower.com/