Norwegian integrated PV power services company Scatec Solar has closed project financing on a 104MW project in the US state of Utah, with an estimated US$188 million to be invested in the construction of the plant.
The Utah Red Hills solar power station forms part of a plan for Scatec Solar to install 750MW of PV generation capacity by the end of 2016. The company floated an IPO on the Oslo Stock Exchange in October and was boosted in November by revenue gains made on the back of a number of project completions in Africa.
Scatec’s efforts to fund the Red Hills project have led the company to enter into US$157 million worth of financing agreements out of the total required. As well as structuring the financing, which included tax and sponsor equity, Scatec is also developer of the project.
Using around 325,000 PV modules on a single-axis tracking system, Red Hills will generate around 210,000,000kWh of electricity per year, sold into the grid under a power purchase agreement (PPA) to local utility Rocky Mountain Power. It will qualify for a 30% Investment Tax Credit (ITC) under the US federal scheme.
In addition to being Scatec’s “largest developed and constructed project in North America”, Red Hills will also be the company’s first US project where it will retain ownership of the completed plant, Scatec chief executive officer Raymond Carlsen said. Carlsen added that now that financing was completed, construction could go ahead on the plant.