SB Energy, Intersect Power Agree on 1.7GW of Solar Power
- Nov 05, 2019
SoftBank Group Corp., through its subsidiary SB Energy Global Holdings, has announced the acquisition of a solar power plant portfolio that has a combined capacity in excess of 1.7 gigawatts. This portfolio comprises five solar farms and will boost SB Energy’s total renewable energy capacity to 7.2 gigawatts. The seller is utility-scale renewable energy developer Intersect Power.
After some closing conditions are satisfied, SB Energy will build, own and operate the facilities. These will be located in California and Texas and are slated to begin construction in early 2020, with SB Energy and Intersect Power as co-developers. All five projects have already entered into contracts to sell renewable energy and renewable energy certificates, as follows:
- Austin Energy has signed a long-term power purchase agreement for the 250-megawatt Aragorn in Culberson County, Texas. Earlier this year, the utility provider spent $460 million on a wood waste biomass-fueled power plant in East Texas.
- Lower Colorado River Authority and one unnamed company have signed long-term PPAs for the 425-megawatt Juno solar farm in Borden County, Texas.
- Titan, a 375-megawatt facility in Culberson County, Texas has a long-term PPA with an unnamed company.
- Athos I, a solar project in Riverside County, Calif. with a 350-megawatt capacity, has a long-term PPA with Direct Energy Business.
- Athos II, also in Riverside County, will have a generation capacity of 300 megawatts and an unnamed company has agreed upon long-term renewable energy credits and energy output.
Combined, the five projects will create more than 3,000 jobs during construction, and upon completion, they will generate electricity to power the equivalent of 357,000 homes and offset 2.8 million carbon dioxide emissions per year.
Gibson Dunn & Crutcher and Citi worked as advisers for SB Energy. Orrick, Herrington & Sutcliffe, Greentech Capital Advisors and Scotiabank advised Intersect Power on the partnership, as well as on project acquisition.