Starwood Energy Group’s affiliate, Starwood SSM2 Canada Incorporated, has reached financial close on a 30MW solar photovoltaic project in the City of Sault Ste. Marie, Ontario. The Starwood SSM2 project will consist of three 10MW PV power generation projects, contracted under the Renewable Energy Standard Offer Program (RESOP), developed and overseen by the Ontario Power Authority (OPA), and connected to local utility PUC Distribution. Once complete the project will be among the largest of its kind in North America.
The project construction financing and long-term loan facility is being provided by Norddeutsche Landesbank Girozentrale (Nord/LB) and KfW IPEX-Bank (KfW), which also provided financing for the 20MW Starwood SSM1 project, due for completion in the near future. Equity financing for Starwood SSM2 will be provided by Starwood Energy Infrastructure Fund and its affiliates. Nautilus Solar Energy, which is majority owned by the Fund and its affiliates, will also serve as asset manager for the project
Q-Cells North America will construct the project on a turnkey basis and provide operations and maintenance services post-completion. In conjunction with closing, Q-Cells North America has been issued a full notice to proceed with construction activities.
Local jobs will be created for engineering, construction and ongoing management, operations, and maintenance of the new solar facilities, which are scheduled to be operational in the third quarter of 2011. Starwood SSM2 will provide power for up to 12,000 Ontario homes.
“We are grateful to Pod for their diligent efforts and very appreciative of the strong community and provincial support in Sault Ste. Marie and Ontario for this important energy infrastructure project,” said Bradford Nordholm, CEO of Starwood Energy.
“This financial closing culminates months of hard work by Q-Cells, Nord/LB and KfW, the same consortium that closed Starwood SSM1, and represents a significant milestone in project financing for utility scale solar generation projects in North America. We look forward to making future investments in solar projects in Ontario,” said Himanshu Saxena, vice president of Starwood Energy.