Investor, Prudential Capital Group, has acquired a stake in a 130MW California PV project owned by independent power producer, Tenaska.
Prudential has agreed to buy minority sharein the 130MW Tenaska Imperial Solar Energy Centre South project for an undisclosed sum.
Prudential will become part owner of the project, which is maintained by Tenaska affiliates, who will continue to maintain majority ownership and manage the project.
The 130MW project is near El Centro, California and is the first utility-scale PV plant to begin construction in California’s Imperial Valley. Electricity from the project will be sold power to San Diego Gas and Electric as part of a 25-year power purchase agreement (PPA).
The Royal Bank of Canada is advising Tenaska on the sale, which is expected to be completed in December, after regulation approvals.
“This joint venture provides our clients with the opportunity to share in the success of an innovative solar project with Tenaska,” said Ric Abel, managing director of Prudential. “We are delighted to partner with Tenaska’s team.”
“Tenaska has been fortunate to work with partners that align with our business philosophy and share in the success of each of our power projects,” said Jerry Crousem Tenaska’s vice chairman and CEO.
Due to California’s renewable energy policies for utilities to gain 33% of energy from renewables and the reduction of carbon emissions, Tenaska has said there is a “strong market” for solar investment.
Also in development is the Tenaska Imperial Solar Energy Center West, also near El Centro and 150MW with a 25-year PPA with San Diego Gas and Electric.