Quantum Guam Power (QGP), an affiliate of power generation company Quantum Utility Generation, has secured a 25-year power purchase agreement with Pacific Green Resources.
Under the agreement, QGP will sell electricity generated from its 7.75MW project on the Pacific island of Guam to the Guam Power Authority (GPA).
The 7.75MW project will form part of a larger 27.4MW project which QGP is currently developing on the island. The combined 35.1MW facility is being built on land owned by a QGP affiliate which received a conditional use permit for the construction of a renewable energy facility earlier this year. The plant will be located in the Dandan, Inarjan area and is expected to be online in 2014.
“Working with the GPA on the transmission and contractual issues to facilitate this acquisition was instrumental,” said Dirk Straussfeld, QUG's chief technical officer.
“GPA and QUG's collaboration on this transaction to create a single, larger project will improve the financing, construction and long-term operations and maintenance of the project and will benefit all of the project's stakeholders,” added Straussfeld.