Independent solar developer 8minutenergy Renewables has signed an agreement to sell its stake in the 121MW Springbok 3 solar farm located in Kern County, California to Capital Dynamics.
The Springbok 3 is the third project of 8minutenergy in the Springbok cluster, which joins others including the 137MW Springbok 1 project and the 191MW Springbok 2 project. The three projects supply clean energy to more than 152,000 Californian households. The projects are equivalent of removing nearly 150,000 cars from the road.
Financial terms related to the agreement have not been disclosed. Ground-breaking of the project is expected to take place later this year and the commercial operations are expected to begin in next June.
While the first two projects created more than 600 direct jobs and 800 indirect jobs, combined, the Springbok 3 project is expected to create nearly 250 jobs and 300 indirect jobs.
8minutenergy will continue to act as the project developer and construction manager, following the completion of stake acquisition by Capital Dynamics.
Capital Dynamics is presently arranging tax equity and debt financing for the project, as the financial close and regulatory approvals are expected in the fourth quarter of this year.
8minutenergy CEO Martin Hermann said: “As California embarks on the challenge of transitioning to 100% clean energy, projects such as the Springbok cluster will be instrumental in proving the cost-competitiveness and ease of installation of large-scale solar power.
“We are pleased to collaborate on another project with Capital Dynamics to bring reliable, affordable solar energy to the people of Los Angeles.”
Last year, 8minutenergy had secured a power purchase agreement (PPA) for Springbok 3 project, with the Southern California Public Power Authority (SCPPA) on behalf of its participating member, the Los Angeles Department of Water and Power (LADWP). It is a 27 year power purchase agreement with SCPPA, with an option for three year extension.
Capital Dynamics clean energy infrastructure (CEI) business director Benoit Allehaut said: “We are proud to acquire the Springbok 3 solar project, and to deepen our relationship with 8minutenergy. Our strategy of ownership of high-quality assets with very long-term power purchase agreements aligned perfectly with this particular project.
“We are confident in our ability to deliver a premium asset in partnership with 8minutenergy, having already witnessed their dedication to developing projects on-time and on-budget.”