Asset manager Capital Dynamics has purchased a 400MW solar-plus-storage complex by 8minute Solar Energy, contracted to supply power to the city of Los Angeles at ultra-low prices.
8minute remains the developer and an equity partner in the Eland Solar & Storage project, located 70 miles north of Los Angeles, and will oversee engineering, design, procurement and construction. The firm has yet to select an EPC contractor, PV Tech understands.
Capital Dynamics, meanwhile, will be the facility's long-term majority equity investor.
The project, which boasts a 300MW/1,200MWh energy storage facility, is set to reach full commercial operations in 2023. Its backers claim it is the second-largest solar project in the US.
The Eland project is contracted to supply power to utility Los Angeles Department of Water and Power (LADWP) at record-breaking fixed tariffs for solar (US$0.01997/kWh) and energy storage (US$0.013/kWh) for a period of 25 years.
“Eland is a breakthrough project, setting records for low-cost solar, and incorporates a large battery energy storage centre that demonstrates solar's ability to power California's vibrant and growing economy 24/7,” 8minute CEO and president Tom Buttgenbach said in a statement this week.
8minute retains the right to repurchase a portion of the project upon its completion.
The move adds to a growing portfolio shared by the Swiss asset manager and Californian solar developer. Earlier this month, the pair announced the purchase of a 300MWac/873MWdc project in Nevada, due to be commissioned in late 2021.
Storage-backed renewables are central to Los Angeles Mayor Eric Garcetti’s plan to replace gas plants with renewable energy, in order to reach its 100%-by-2045 clean energy target.