Shell's solar interests in the US also include a minority stake in developer Silicon Ranch. Image: Shell.
NextEnergy Capital (NEC) has entered into two separate ten-year power purchase agreements with Shell Energy North America for the power from two US-based solar farms.
The deal will see Shell Energy North America, the US and Canada-facing utility and energy solutions arm of the oil and gas major, procure around 62GWh of solar each year – equivalent to approximately 90% of the portfolio’s output – from two solar farms with a combined generation capacity of 45MW.
Also included in the deal are an equivalent amount of Renewable Energy Certificates for five years.
The projects in question – Briel Farm and Fardy’s Mill, both located in Virginia – form part of NEC’s NextPower III fund’s portfolio, which amounts to 250MW.
Both projects are currently under construction with commissioning anticipated before the year’s end.
Lorena Ciciriello, managing director at NEC, described the execution of the contracts as a “landmark” for the institutional fund, adding that the company was delighted for the projects to support decarbonisation progress in a historically “coal-centric state” such as Virginia.
“We’re proud to be working with NextEnergy Capital to enable further development of renewable energy assets that provide the kind of energy solutions that society demands,” Glenn Wright, president at Shell Energy North America, said.
Shell Energy North America provides utilities, retailers and businesses with power, gas and other energy-related solutions, professing to have a generation capacity in excess of 10GW.
Shell’s wider interest in solar has continued to climb, driven by a now established goal to attain net zero status by 2050. That target will see it invest more significantly in solar PV and other renewables, seemingly expanding on a portfolio of clean energy investments that includes a stake in US-based developer Silicon Ranch.
Jun 15 - Jun 16, 2021
Looking at the drivers and dynamics of utility scale solar in the UK & Ireland over the next five years. This event will consider the immediate challenges as we enter the build phase in both these markets where we could see as much as 4GW deployed in 2021 alone! What developments will continue the growth of 100MW+ sites and what impact will government policy have on the rate of deployment in both markets?Join leading developers and manufacturers shaping the direction of one of Europe’s most active markets and hear from speakers with a history of influencing innovation and change.
Feb 03 - Feb 04, 2021
The business of solar is changing, as the industry scales up, technology, IT and new players to the market will add complexity. This sparks a host of opportunities such as co-location of solar and storage and the rise of unsubsidised solar projects as well as challenges which will question the very business model of European solar asset owners. Solar Finance & Investment Europe is the meeting place for institutional investors, sovereign wealth funds, solar, wind and storage funds and large energy buyers to do business.