8point3 Energy Partners LP, the joint venture formed by SunPower and First Solar, has entered into agreements to acquire an interest in the 50 MW Hooper project from SunPower and the 40 MW Kingbird project from First Solar. These drop-down acquisitions are expected to generate approximately $9 million in combined annual pre-tax cashflow and have a 20-year average contract life.
“We’re pleased to announce our second and third drop-down transactions today,” says Chuck Boynton, CEO of 8point3 Energy Partners. “These acquisitions continue our long-term strategy of adding high-quality solar projects with investment-grade off-takers to our portfolio.”
The 50 MW Hooper project is located in Colorado’s San Luis Valley and commenced operations in December 2015. Xcel Energy is buying the project’s output under a 20-year power purchase agreement.
The 40 MW Kingbird project is located in Kern County, Calif., and construction of the plant is expected to be completed next month. Following commercial operation, power generated by the Kingbird project will be sold to member cities of the Southern California Public Power Authority and the City of Pasadena under separate 20-year power purchase agreements.
“These transactions, along with our purchase of the Kern County School District project in January, should enable us to achieve our targeted annual distribution growth rate of 12 to 15 percent through the end of 2017 without additional project acquisitions,” adds Boynton.