New Energy Solar acquires majority interest in two SunPower power plants in California
New Energy Solar has acquired a majority interest in two large-scale solar projects that combines to more than 134MW that were designed and developed by SunPower.
These two solar projects, each having a capacity of 67.4MWs, are located in the Kern County of California.
After this transaction, SunPower will continue to retain its ownership interest in the projects and provide operation and maintenance services.
New Energy Solar CEO Tom Kline said: “We believe the quality of these projects, both in terms of SunPower's leading technology and their highly creditworthy off-takers make them excellent additions to our portfolio.
“We are proud to partner with SunPower, one of the most experienced and leading developers and operators of utility-scale solar power.”
One of the solar projects has secured a long term agreement with Stanford University, which will buy all energy and renewable energy credits produced from the site.
The other solar project has signed a similar agreement with the Turlock Irrigation District.
Both the parties will use the generated power to fulfill the electricity demand about 300 miles away.
SunPower senior vice president Nam Nguyen said: “Stanford University and TID are using an innovative model called off-site solar to meet their renewable energy goals and serve their constituencies with cost-competitive emission-free solar power.
“Off-site solar allows for land-constrained organizations to benefit from the economies of scale achieved with larger solar installations. We congratulate New Energy Solar on their leadership in recognizing the value of this model and thank them for their partnership.”
Sunpower installed the SunPower Oasis Power Plant technology in both the sites which are scheduled to commence commercial operation from this month.
The acquisition is subject to fulfillment of certain conditions such as connection to the electrical grid, satisfying testing criteria and the project’s commercial operation.
New Energy Solar took advice from MVP Capital and legal assistance from Foley & Lardner for this transaction.