Innergex Acquires Texas Solar Project Which Has PPA With Power Marketer
Innergex Renewable Energy Inc. ("Innergex" or the "Corporation") announced the acquisition of a 250MWAC/315 MWDC photovoltaic solar project (Phoebe) located in Winkler county, TX, United States from Longroad Energy Partners, LLC.
Commercial operation should be reached in the third quarter of 2019, the company said
Innergex said that the Phoebe solar facility will sell 100% of its output to the ERCOT power grid and receive a fixed price on 89% of its energy produced under a 12-year power purchase agreement with Shell Energy North America, commencing in July 2019. The remainder of the project's output will receive a merchant market price.
Innergex said that, "The Project is expecting a projected Adjusted EBITDA of approximately US$20.2 million (C$26.7 million) for 12-month of operations. Following cash distributions to the Tax Equity partner, the distributions receivable by Innergex prior to debt service would be approximately US$13.8 million (C$18.2 million). The project is also eligible to receive a federal Investment Tax Credit (ITC) sized to approximately 30% of the project's capital costs. The ITC will be largely allocated to the Tax Equity partner. After the seventh year of operations, it is expected that approximately 95% of the projected Adjusted EBITDA, representing about US$19.6 million (C$25.9 million) keeping the same assumptions, would be available for distribution to Innergex prior to debt service."
Innergex said that, "Total construction costs are estimated at US$397 million (C$524 million) and will be partly financed in priority through a US$292 million (C$385 million) construction and long-term project financing led by the Energy Finance unit of CIT Group Inc. Innergex will fund its US$105 million (C$139) equity commitment after the debt is fully drawn. This obligation will be supported by the issuance of a letter of credit."