Lightsource BP and Allianz Global sign proxy generation PPA for Texas solar project

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Image: Lightsource BP

Solar developer Lightsource BP has signed a proxy generation power purchase agreement (pgPPA) with investment group Allianz Global.

The contract, which was structured by investment risk firm Nephila Climate, relates to Lightsource BP’s 153MW capacity Briar Creek solar farm near Dallas, Texas, which is set to come online at the end of this year. It is expected to generate US$19.7 million in property tax revenue to Navarro County during its lifespan, and will create 250 jobs during construction, according to a statement from the company.

Proxy generation PPAs differ from other PPA structures in that they don’t settle energy on metered generation, but instead show an hourly index specifying the volume of energy a PV project would have produced if it had been operated under best practice standards.

Vijay Suchdev, managing director of Allianz Global’s Capital Solutions division, called the deal a “novel renewable energy hedge structure and risk management tool”.

Lightsource BP recently secured a virtual PPA agreement with US aerospace and defence firm L3Harris Technologies for 100MW of capacity at the developer’s Elm Branch solar project in Texas, which is also due to be completed later this year.

Kevin Smith, chief executive of Lightsource BP’s American business, said the deal represents a next stage in the “evolution of renewable energy products” in the US.

Smith was appointed the company’s new head of the Americas business in January 2019, tasked with leading an expansion in the region. The company recently joined the Solar Energy Industries Association in the US.

It is the latest corporate PPA agreement to come to pass in the US after a substantial rise in contracts over the past two years. A recent report from BloombergNEF showed that corporate renewables PPAs rose by 44% worldwide between 2018 and 2019 to encompass 19.5GW of capacity, driven by the US market. BloombergNEF also noted a pivot from wind to solar in the area managed by the Electric Reliability Council of Texas. Senior associate Kyle Harrison told PVTech at the time that businesses were trying to take advantage of lower energy prices during the state’s hot summer months.

Ariane West, Nephila Climate’s director of structured finance, said that contracts such as the proxy generation PPA “are essential to support investment and financing infrastructure on the scale needed to achieve net zero carbon targets.”

Read Next

March 8, 2021
Energy company American Electric Power (AEP) has issued a request for proposals (RFP) for off-take on new utility-scale new solar, wind, and battery energy storage systems located in the PJM Interconnection area.
March 4, 2021
A round-up of the latest solar project news from around the world, including updates from Hanwha Q CELLS and Capital Dynamics.
PV Tech Premium
March 4, 2021
An exclusive recording from our Solar Finance & Investment Europe event, featuring a panel discussion on the future of the solar industry.
March 2, 2021
A round-up of solar news from across the United States, including updates from EDF Renewables, utility group Exelon and UK-based investor SDLC.
February 25, 2021
The Global Wind Energy Council (GWEC) and Global Solar Council (GSC) have called on Mexican lawmakers to prevent changes to the country’s Electricity Act, Ley de la Industria Electrica (LIE), which pose what they call “an unequivocal threat" to private investment in clean energy.
February 23, 2021
Dozens of chief executives in the renewable energy sector have demanded that US President Joe Biden repeal the tariff hike Donald Trump’s Administration placed on solar panel imports last year.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
March 9, 2021
Solar Media Events
March 17, 2021
Solar Media Events
April 13, 2021
Solar Media Events
April 20, 2021
Get 50% off!
Subscribe before 5th of April 2020!