CIP Acquires 350 MW Solar Project in Texas; Shell to Purchase Power

SPDI and Avondale Solar have completed the sale of the 350 MW ac Fighting Jays Solar PV project in Texas to an affiliate of CIP.

Solar Plus Development Inc (SPDI), a subsidiary of Plus Renewable Technologies and Avondale Solar on July 22, 2020, completed the sale of the 350 MW ac Fighting Jays Solar PV project in Fort Bend County, Texas that they have have been developing via their affiliate, AP Solar, to an affiliate of Copenhagen Infrastructure Partners (CIP).

On July 7, 2020, CIP, Fighting Jays Solar and Shell Energy North America (Shell) entered into a long term hedge agreement under which Shell will purchase physical power from Fighting Jays Solar. Additionally, on July 23, 2020, CIP issued notice to proceed to Centerpoint Energy to begin construction of a substation to allow Fighting Jays Solar to interconnect into the ERCOT grid. Snapper Creek advised CIP on the structuring and execution of the novel hedge program with Shell.

The project is expected to break ground in the second half of 2020 and be operational by the summer of 2022. Due to its close proximity to the Houston metro area, the Fighting Jays Solar project is expected to experience minimal curtailment and basis risk to the premium Houston Zone of ERCOT.

Speaking on behalf of the Sellers, Trevor Nash, the CEO of AP Solar said, “we are very pleased to have completed our agreement with Copenhagen Infrastructure Partners on the development and sale of Fighting Jays Solar and we look forward to working with CIP on other projects in the future. When fully operational, Fighting Jays will be the largest renewable facility supplying clean and reliable power to the Houston Zone. Due to projected population growth, Houston Zone is expected to be by far the largest load pocket in ERCOT over the next several years.”

In February, we had reported that Greengate Power Corporation and CIP had entered into an agreement with the intention to fund the further development and construction of the Travers Solar project, which will be the largest solar project (to date) in Canada when completed. Subject to the achievement of certain remaining milestones, the construction of the project is anticipated to commence in mid-2020, with full commercial operations targeted for the end of 2021.