US development asset sales
10 March 2014
Infigen sells 40 MW of US solar PV development projects
Infigen Energy (ASX: IFN) today announced that it has sold two of its US solar photovoltaic (PV) development projects to Duke Energy Renewables, a business unit of Duke Energy.
The developments (Wildwood I and Pumpjack) are located in California and have development approval for installed capacity of 20 MW each. The development projects are in a construction ready state including securing transmission connection agreements and 20 year power purchase agreements (PPAs) with Southern California Edison.
These two projects are the first of a multi-stage development opportunity that Infigen has cultivated within California. Located adjacent to the Wildwood I and Pumpjack projects, the fully permitted Wildwood II (15 MW), Rio Bravo (20 MW) and Rio Bravo II (20 MW) projects are now among Infigen’s most prospective development opportunities.
All of these California projects originate from Infigen’s joint development arrangement with Pioneer Green Energy.
The amounts receivable by Infigen in connection with the sale of Wildwood I and Pumpjack include fees for development/construction management services to be provided by Infigen up to commercial operation of the solar farms. Infigen will also recover electric connection and PPA related deposits.
Infigen’s US CEO, Craig Carson, said, “We are very pleased that our first development efforts in solar PV have succeeded in bringing together strong counterparties such as Southern California Edison and now Duke Energy Renewables. We expect that the experience gained and the relationships created on these first solar projects to emerge from our development pipeline will deliver significant benefits for our future development opportunities.”
“The acquisition of Pumpjack and Wildwood almost doubles our solar power capacity in California,” said Duke Energy Renewables President Greg Wolf. “We’re pleased to provide an increasing supply of affordable, clean energy to the nation’s number one solar market.”
Infigen’s Managing Director, Miles George, said “These transactions are an excellent demonstration that Infigen can and will realise value from its development pipeline where opportunities arise. While we will wish to retain certain opportunities through to construction and operation, the flexibility to sell developed opportunities to other parties creates welcome additional options for Infigen.”
About Infigen Energy
Infigen Energy is a specialist renewable energy business. We have interests in 24 wind farms across Australia and the United States. With a total installed capacity in excess of 1,600MW (on an equity interest basis), we currently generate enough renewable energy per year to power over half a million households.
As a fully integrated renewable energy business in Australia, we develop, build, own and operate energy generation assets and directly manage the sale of the electricity that we produce to a range of customers in the wholesale market.
Infigen Energy trades on the Australian Securities Exchange under the code IFN.
For further information please visit our website:www.infigenenergy.com