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.”

4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.

Read Next

PV Tech Premium
July 1, 2022
PV Tech Premium spoke with Cypress Creek Renewable Energy and AES Clean Energy to discuss the newly formed US Solar Buyer Consortium, its objectives, market challenges and the potential advantages it holds for US manufacturing and project development.
June 30, 2022
Voltalia has started the development of a cluster of solar PV projects in Brazil with a planned combined capacity of 1.5GW.
June 29, 2022
A round-up of the latest news from the US solar market, including EDF Renewables selling its 270MWdc Huck Finn Solar Project to a local utility, CS Energy partnering to deliver New York community solar and NextEnergy Capital expanding its US presence.
June 29, 2022
The US solar industry added 17,212 jobs in 2021, up 5.4% on 2020 figures, with 40% of all US energy jobs now focused on the transition to a net zero economy, according to the Department of Energy’s (DOE) US Energy and Employment Report (USEER).
PV Tech Premium
June 28, 2022
Solar and energy storage were described by Elon Musk as going together “like peanut butter and jelly”. Andy Colthorpe meets some of the players creating this winning combination in the US.
June 28, 2022
Solar developer Procon Solar GmbH has sold a 400MW PV project pipeline to German energy company EnBW, with the potential for this to double over the next year as EnBW targets 50% of renewables in its generation mix by 2025.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event