A subsidiary of Greenbacker Renewable Energy Company has purchased a yet to be constructed 26MW PV project located in Imperial County, California, from Solar Frontier Americas.
The Midway III project is expected to start construction in January 2018 and reach commercial operation by October 2018.
As part of this pre-construction deal, the project has a construction management contract and a module supply agreement in place with Solar Frontier. Greenbacker is already in negotiations with a financial institution to secure a construction loan and term loan facility as well as a tax equity financing arrangement with a large US-based financial institution.
Once operational, Midway III will sell all the power generated to a California utility through a 20-year power purchase agreement (PPA).
Charles Wheeler, CEO of Greenbacker, said: “Working with Solar Frontier to construct a large-scale solar project in California, as well as two large financial institutions to finance the transaction, is a great investment opportunity for Greenbacker. Upon completion in the third quarter of 2018, we see Midway III as another quality asset producing stable and predictable cash flows to the benefit of our investors”.