SunEdison forms joint venture with Dominion for Utah solar project

US based renewable energy development company SunEdison has entered into a joint venture with energy producer Dominion for its Four Brothers solar project in Utah.

Dominion will acquire 50% cash equity and 99% tax equity in the project through an investment of approximately $500m, and it is expected to fund the construction of the project.

However, SunEdison will be financing the rest of the amount required to fund the project, which is fully financed through a $150m four-year term loan with Deutsche Bank.

Four Brothers project has a capacity to generate 420 MW DC, or 320 MW AC power and is expected to start commercial operations in mid next year.

SunEdison has already entered into a 20 year term power purchase agreements with PacifiCorp (A-/A3), a subsidiary of Berkshire Hathaway Energy for the solar project.

The project is expected to produce enough electricity to power more than 90,000 homes in the US state, and is likely to create 500 construction jobs in Beaver and Iron Counties.

SunEdison EMEA & Americas executive vice president Paul Gaynor said: "From a financial perspective, the Dominion partnership demonstrates the quality of our project and provides SunEdison and TerraForm Power with a complete solution for the construction and permanent financing of this 420 MW solar facility.

"This solar project will also bring clean, affordable electricity to Utah residents and businesses while providing attractive returns for its owners. This partnership represents a major investment in the Utah economy, and creates both local jobs and steady income for the state from property and other taxes."