Shell turns to NextEnergy Capital for US solar PPA

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Shell's solar interests in the US also include a minority stake in developer Silicon Ranch. Image: Shell.

NextEnergy Capital (NEC) has entered into two separate ten-year power purchase agreements with Shell Energy North America for the power from two US-based solar farms.

The deal will see Shell Energy North America, the US and Canada-facing utility and energy solutions arm of the oil and gas major, procure around 62GWh of solar each year – equivalent to approximately 90% of the portfolio’s output – from two solar farms with a combined generation capacity of 45MW.

Also included in the deal are an equivalent amount of Renewable Energy Certificates for five years.

The projects in question – Briel Farm and Fardy’s Mill, both located in Virginia – form part of NEC’s NextPower III fund’s portfolio, which amounts to 250MW.

Both projects are currently under construction with commissioning anticipated before the year’s end.

Lorena Ciciriello, managing director at NEC, described the execution of the contracts as a “landmark” for the institutional fund, adding that the company was delighted for the projects to support decarbonisation progress in a historically “coal-centric state” such as Virginia.

“We’re proud to be working with NextEnergy Capital to enable further development of renewable energy assets that provide the kind of energy solutions that society demands,” Glenn Wright, president at Shell Energy North America, said.

Shell Energy North America provides utilities, retailers and businesses with power, gas and other energy-related solutions, professing to have a generation capacity in excess of 10GW.

Shell’s wider interest in solar has continued to climb, driven by a now established goal to attain net zero status by 2050. That target will see it invest more significantly in solar PV and other renewables, seemingly expanding on a portfolio of clean energy investments that includes a stake in US-based developer Silicon Ranch.

Read Next

May 12, 2021
Data from green hydrogen demonstration projects should be made available to help enable the future bankability of larger installations, unleashing the sector’s decarbonisation potential, a panel has suggested.
May 10, 2021
Spanish energy company Acciona plans to carry out an initial public offering (IPO) of its renewables unit before the end of June despite recent volatility among Spanish green energy stocks.
May 6, 2021
A round-up of project updates from the US, including progress from EDF Renewables in New York, LS Power's country-wide project acquisition, and a string of investments from Dominion Energy Virginia.
May 6, 2021
Independent power producer has Opdenergy has postponed an initial public offering (IPO) just days before its shares were due to start trading on the Spanish stock exchanges.
May 4, 2021
Spanish renewables developer and independent power producer (IPP) Grupo Ecoener has seen its shares slide on its market debut today.
PV Tech Premium
May 3, 2021
Companies are purchasing solar, wind, and other forms of renewable energy more than ever before. The power purchase agreement (PPA) market in Europe has grown to a cumulative capacity of over 12GW, with a record 4GW signed in 2020. Corporate climate commitments are opening doors for investment in renewable energy, and continued price declines are convincing companies to sign new contracts. Is the European market ready to fulfil its potential? By Dr. Mercè Labordena, senior policy advisor at SolarPower Europe, and Milena Koot, communications advisor at SolarPower Europe

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021