International downstream PV firm Conergy and developer Holocene have jointly reached financial close on a 28MW portfolio of PV projects in North Carolina.
The firms said they had secured federal and state tax equity investments from two unnamed US banks for the five projects, all developed by Holocene. The two companies are also providing sponsor and development equity capital for the projects, valued at US$60 million, according to Conergy.
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Conergy said the transaction reflected its aim of growing its share of the US solar market, which is heating up ahead of the expected scaling back of the investment tax credit at the end of 2016. The company's expansion plans received a boost last month when German utility RWE acquired a minority stake in the firm.
With financing for the projects secured, Conergy will now act as the main engineering, procurement and construction contractor, as well as providing operations and maintenance services once they are commissioned.
The projects, in North Carolina’s Johnston, Duplin, and Franklin counties, are already under construction and slated for completion later this year.
Anthony Fotopoulos, Conergy’s regional business head for North America, said: “Conergy is pleased at this opportunity to bring our global development, financing, and EPC capabilities to North Carolina, and to serve as sponsor in this significant endeavour. Development partners are important to us at Conergy; we were able to capture local expertise by investing in the projects brought together by Holocene.”
Duke Energy will purchase power from the plants under 15-year power purchase agreements. The utility has been on a drive to expand solar in the state, with 278MW scheduled to be online by 2015 and more in the pipeline.
