EDF Secures Financing for 300 MW Utah Solar Project
EDF power solutions North America has secured financing for the 300-megawatt Utah Solar 1 Energy Project, marking a major milestone for the development of a large-scale solar facility in Utah. The project is backed by a long-term power purchase agreement and is expected to provide a significant volume of renewable electricity to customers served by the Los Angeles Department of Water and Power (LADWP).
The Utah Solar 1 project is supported by a 30-year power purchase agreement executed with the Southern California Public Power Authority (SCPPA). Under the agreement, electricity produced by the solar facility will be delivered to support the electricity needs of LADWP customers. Once operational, the project is estimated to generate approximately 766,000 megawatt-hours (MWh) of electricity annually.
The long-term power purchase agreement provides a framework for the project to deliver renewable electricity over several decades while supporting the energy requirements of one of the largest municipal utilities in the United States. The agreement also provides an established offtake arrangement for the project’s generation as EDF power solutions North America advances the development toward construction and eventual operation.
Financing for Utah Solar 1 has been secured through a group of major international financial institutions. Crédit Agricole CIB, MUFG Bank, Ltd., National Bank of Canada, Societe Generale and Standard Chartered Bank are providing credit facilities for the project.
MUFG Bank, Ltd. is serving as Administrative Agent for the financing. Crédit Agricole CIB is acting as Initial Coordinating Lead Arranger, while MUFG Bank, Ltd., National Bank of Canada, Societe Generale and Standard Chartered Bank are serving as Coordinating Lead Arrangers and Initial Lenders.
The financing structure also includes a tax credit bridge facility. Crédit Agricole CIB is serving as the sole buyer of the Production Tax Credits (PTC) expected to be generated by the project. The inclusion of the tax credit facility forms an important component of the overall financing package and supports the capital structure required to advance the solar development.
Financial close represents an important transition for Utah Solar 1 as the project moves toward construction. Securing financing allows EDF power solutions North America and its partners to proceed with the next stages of development while preparing the facility to deliver renewable electricity under its long-term power purchase agreement.
“Reaching financial close on Utah Solar 1 reflects strong market confidence in this asset and marks a major milestone for our team,” said Amy Lloyd, CFO of EDF power solutions North America. “We appreciate the commitment of SCPPA, LADWP and our financial partners as we advance into construction. In addition to generating clean power, this development delivers meaningful economic benefits for Millard County and funding for Utah public schools through our work with the Utah Trust Lands Administration.”
Beyond its expected contribution to renewable electricity generation, Utah Solar 1 is also projected to create economic activity during both construction and its operating life. At the peak of construction activity, approximately 400 workers are expected to be employed on the project.
The construction workforce is expected to support activity across a range of areas associated with the development and installation of the solar facility. The project is also expected to generate longer-term economic benefits through tax payments and lease revenues after construction is completed.
Over its multi-decade operating life, Utah Solar 1 is projected to generate more than $40 million in local tax revenue for Millard County. The project is also expected to provide approximately $27 million in lease revenue to the Utah Trust Lands Administration.
The anticipated lease revenue is part of the project’s broader connection with Utah’s public lands and educational funding structure. Through its work with the Utah Trust Lands Administration, the development is expected to contribute funding that supports Utah public schools while also providing economic benefits to the local community.
Source Link: https://www.businesswire.com/
