SunEdison Inc. and Dominion have signed a joint venture agreement for the 420-megawatt Four Brothers solar project in Utah, developed by SunEdison.
The project is now under construction and fully financed with an expected commercial operation date of mid-2016. The Four Brothers project is contracted under long-term power purchase agreements for 20 years with PacifiCorp, a subsidiary of Berkshire Hathaway Energy.
Under the terms of the JV, Dominion will invest approximately US$500 million to acquire 50% of the cash equity and 99% of the tax equity in Four Brothers, including funding of construction. SunEdison will contribute the remaining portion of the capital required to complete the project, which it has fully financed through a US$150 million four-year term loan with Deutsche Bank. The total US$650 million financing package fully funds the project for completion and long-term ownership.
SunEdison’s 50% stake in the Four Brothers project is on the Call Right Projects List for TerraForm Power Inc.