Project briefing: Bringing one of the US’ largest solar developments to life through collaboration, outreach and adaptability

Vesper Energy, a Texas-based renewable energy developer, has extensive experience in developing, constructing and operating utility-scale renewable energy facilities. The Vesper Energy team has collectively delivered more than 10GW of renewable energy projects worldwide and currently has a development pipeline that includes over 55 renewable energy and energy storage assets—enough to power more than two million homes.

While many factors contribute to this success, one of the most impactful is Vesper Energy’s emphasis on strategic business relationships. Transparent and dynamic collaboration with diverse stakeholders is essential to keep up with the industry’s rapid innovation, new guidelines and guidance and changing obstacles and challenges.

Vesper Energy’s Hornet Solar project in Swisher County, Texas, is a prime example of how collaboration drives success and highlights how partners can work together to complete a complex, large-scale project.

The Hornet Solar project is owned by Hornet Solar LLC, a wholly owned subsidiary of Vesper Energy Development LLC (“Vesper Energy”). Vesper Energy began development of the Hornet Solar project over four years ago and engaged Blattner Energy to assist with the design and construction of the project in 2022, beginning their construction partnership on the project.

When the Inflation Reduction Act (IRA) was passed, the Hornet Solar project was already well underway. Vesper Energy, serving as the developer, and Blattner, a Minnesota-based utility-scale engineering, procurement and construction (EPC) solutions partner, kept the project on track despite the challenges and uncertainties surrounding the new IRA guidance.

The Hornet Solar project began construction in autumn 2023 and is currently on track to complete construction and start energy production in early 2025.

Planning a project of massive scope and scale

The Hornet Solar project is one of the largest single-phase solar projects in the United States to date. Located in west Texas and spanning over six square miles, it will generate 600MW of electricity annually, enough to power 160,000 homes each year. It connects directly to the Electric Reliability Council of Texas (ERCOT) grid.

The sheer scale of Hornet Solar creates significant challenges that require careful management. The project will eventually utilise 1,363,257 solar modules on a project area of 3,900 acres, which is more than four times the size of Central Park in New York. Quality control and meticulous planning across every aspect of the project are critical.

Early on, the Vesper Energy team created a comprehensive project development plan that included critical pre-work, material sourcing and community outreach efforts. The goal was to create a plan that was both proactive and flexible so engineering could advance the work safely and efficiently. At the same time, the team was finalising financing and regulatory details, knowing that the pending IRA guidance may require a shift in approach.

Some of the proactive work Vesper Energy and Blattner advanced before beginning construction included:

• Ordering long-lead procurement items while the project was in development
• Developing a process of selecting and prioritising equipment that allowed for flexibility if complications arose
• Exploring opportunities for local material sourcing and labour to ensure the project delivered positive economic benefits back to the surrounding community
• Working closely with city and county officials to gain and maintain support for the project
• Communicating regularly with landowners and the community to provide ongoing project and schedule updates

The upfront work by Vesper Energy and its partners laid the foundation for keeping the project moving forward. The Hornet Solar project’s development was successful because operations never ceased despite times of uncertainty.

Defining partnership roles and responsibilities

When Vesper Energy and Blattner came together on Hornet Solar, both organisations were committed to quickly building a relationship grounded in trust, collaboration and clarity.

We began the partnership with an in-person kickoff meeting to ensure clear alignment on project goals, roles, responsibilities, potential concerns and communication strategies. It was also an opportunity to identify each team’s unique strengths, skills and areas of expertise. Blattner Energy brought schedule efficiencies and cost-benefit solutions to the large-scale project, while Vesper Energy had a shovel-ready and permitted development project, allowing for smooth implementation without significant construction roadblocks.

Landmark legislation for renewable energy

The Hornet Solar project was two years into development and a year from starting construction when the landmark IRA legislation became effective in August 2022. The IRA focused on initiatives including reducing inflation, lowering the federal budget deficit, reducing prescription drug prices and investing in domestic energy production, including clean energy.

The introduction of Production Tax Credit (PTC) transferability offered solar developers an alternative to the Investment Tax Credit (ITC). For some renewable projects, PTC transferability provides a more favourable cash flow over time, simplifies project financing and helps developers achieve more efficient timelines. This mechanism is crucial for the financial viability of some large-scale renewable projects like the Hornet Solar project, helping overcome financial hurdles and streamlining project execution. Renewable energy projects, especially utility-scale solar facilities, face financial hurdles such as high initial costs, regulatory and permitting delays, and unpredictable market conditions; PTC transferability stimulates growth for these projects by offering tax credits to those that qualify. As the renewable energy landscape evolves, mechanisms like PTC transferability serve as critical catalysts to help support even the most ambitious solar projects.

The IRA’s provisions have significantly impacted the renewable energy industry, driving investment and accelerating the deployment of clean energy projects. By offering financial incentives and simplifying financing, the IRA has created a more favourable environment for renewable energy development.

IRA impact on the Hornet Solar project

The IRA and PTC transferability had significant implications for the Hornet Solar project. Following the IRA’s passage, Vesper Energy and Blattner Energy worked closely to advance engineering and procurement despite uncertainties around IRA qualification and guidance.

Vesper Energy and Blattner divided responsibilities to ensure smooth progression while researching IRA legislation components and their implications for the project. Vesper Energy assessed the PTC transferability allowance to determine the best financial strategy for the project, while Blattner focused on compliance items and implementation items applicable to contractors, including prevailing wage and apprenticeship guidelines.

Together, they determined that the IRA’s provisions, such as higher federal incentives for projects in energy communities, enhanced the project’s financial viability and attractiveness. Hornet Solar is in an energy community, defined by the IRA as a location historically reliant on fossil fuel production and extraction for its economy. This status provided increased federal incentives, which strengthened the project’s financial viability.

PTC transferability favours projects with high solar irradiance, lower construction costs and higher energy price volatility, making it a good fit for this project. The team optimised the Hornet Solar project’s design to maximise its eligibility for the PTC, making Hornet Solar one of the first renewable energy projects to utilise the benefits of PTC transferability.

Engaging employees and community stakeholders

Trusted, collaborative relationships are also critical at the employee and community level — especially with a project the size of Hornet Solar. The Vesper Energy and Blattner teams made these partnerships a priority from day one.

The project will have hundreds of workers on the site — many hired locally and many who are new to renewable energy. The rapid growth of the industry means significant job opportunities and an increasing need for trained labour. As a result, Blattner set up training opportunities on the project site to onboard people new to the industry and set them up for success. And the Vesper Energy and Blattner teams provided big-picture context for the importance of this work and instilled pride in team members by reinforcing the value of the project and how it will contribute to the community and greater good.

Vesper Energy strives to be a contributing member of the communities where it works, and the team maintains this approach with its Hornet Solar project. A proactive effort to set expectations, provide regular updates and listen to concerns helped establish positive relationships with a diverse group of community stakeholders throughout the project.

Vesper Energy and Blattner immersed themselves in the community to build mutually beneficial partnerships through methods including:

• Reaching out to public officials very early in the planning process to share information about the project, address concerns and understand opportunities for Vesper Energy to help support the community
• Maintaining regular contact with landowners and community members — even during times when project activity was paused so that they always felt informed and engaged in the process
• Identifying opportunities to give back to communities — whether through financial support to area organisations or through infrastructure updates such as improved roadways adjacent to the project site

What’s next for the Hornet Solar project?

The Hornet Solar project is nearing completion as the two teams advance key project milestones, including:

• Substation back-feed in summer 2024
• Testing and commissioning to begin late summer 2024
• Mechanical completion by mid-March 2025
• Anticipated substantial completion by late April 2025

Upon completion, the Hornet Solar project is also expected to provide long-term economic benefits, generating more than US$100 million in new tax revenue for Swisher County and its school districts, hospitals and local governments over the 40 years of its anticipated lifespan. Hornet Solar is estimated to provide approximately:

• US$25.7 million to Swisher County, a contribution that could fund the purchase of about 51 fire trucks or around 514 police cars.
• US$12 million to the Swisher Memorial Hospital District, revenue that could fund four state-of-the-art MRI machines.
• US$61 million for Tulia Independent School District, providing funds that could build two to three new elementary schools.

The EPC partner’s view:

Matt Dankers, Blattner’s executive vice president of commercial operations, reflects on the importance of partnership working in big projects such as Hornet Solar:

It’s uncommon to step into a project—especially one of this size—and so quickly have teams working seamlessly together. This level of collaboration has been a consistent experience throughout the Hornet Solar project with Vesper Energy and is truly a testament to how much further and faster you can go with a like-minded partner.

It’s never been more important for developers and their partners to be proactive and flexible when working on renewable projects. Successfully navigating the complexities requires a team willing to collaborate to find the best solutions for the project and the community.

The success of the Hornet Solar Project is a great example of the power of collaboration in the renewable energy industry. By working together openly and with a shared understanding of each other’s strengths, Vesper Energy and Blattner overcame challenges, adapted to change, and, together, we are delivering a project that will significantly contribute to the nation’s clean energy goals.

Best practices for collaborating on complex renewable energy developments

The Hornet Solar project demonstrates how the Vesper Energy and Blattner teams leveraged proactive planning, strategic partnerships and effective communication to overcome challenges and shifting regulations in renewable energy development projects.

Three best practices for future collaborations in the renewable energy market include:

Build trusted relationships early. The Hornet Solar project benefited from early and proactive collaboration with all its stakeholders. By starting relationships early in the process, the team fostered trust and understanding before project challenges occurred. This approach allowed for a more agile and responsive project development process and positive community relationships and support.

Intentionally building positive working relationships and nurturing trust through each interaction will enhance every project from start to finish.

Stay informed and focused on the future. Staying informed about industry changes and understanding their impact on ongoing and future work is essential. Even positive changes take time to understand and implement properly, but doing so can significantly enhance project outcomes.

Working closely with team members to research industry shifts and determine their implications can significantly benefit the project and all its stakeholders. The rapid pace of change in the renewable energy industry makes this a crucial priority.

Communicate consistently for better outcomes. Project timelines are often fluid and require flexibility. Keeping the right work advancing and knowing how to navigate both anticipated and unexpected challenges is only possible through transparent, ongoing communication.

For Vesper Energy and Blattner, the initial in-person kickoff meeting and continued, regular check-ins fostered a high-value, collaborative relationship that will ensure the project’s completion on time, on strategy, and with the best possible outcome.

Advancing renewable energy projects will require intentional partnerships. As the pace and volume of change accelerate, the teams prioritising strong relationships, staying agile and leveraging the power of communication are most likely to achieve ambitious goals. A commitment to collaboration provides a valuable foundation for future large-scale renewable energy projects, leading towards a cleaner and more sustainable future.

Author

Zach Wald, senior director of project execution, Vesper Energy

Zach Wald serves as senior director of project execution for Vesper Energy, overseeing early-stage and construction activities for the organization’s solar developments. Prior to joining Vesper Energy, Zach held project management roles at NextEra Energy, where he managed teams responsible for construction, safety, quality, budget and schedule for nearly 80 renewable energy projects.

He also worked in site and project management at Blattner Energy. Zach received a bachelor of science in electrical engineering from the South Dakota School of Mines and Technology and a master’s in business administration from the University of Nebraska.