SB Energy Global Holdings Ltd., a subsidiary of SoftBank Group Corp., is acquiring a portfolio of five U.S. solar power plants with a combined capacity of more than 1.7 GW from Intersect Power LLC, a utility-scale renewable energy developer.
Subject to satisfying certain closing conditions, SB Energy will build, own and operate the five projects, located in California and Texas. The company expects to begin construction in early 2020. SB Energy and Intersect Power previously partnered to develop the projects.
The five projects have entered into contracts to sell renewable energy and renewable energy certificates (RECs):
- Aragorn, a 250 MW project in Culberson Country, Texas, has a long-term power purchase agreement (PPA) with Austin Energy.
- Athos I, a 350 MW project in Riverside County, Calif., has a long-term PPA with Direct Energy Business.
- Athos II, a 300 MW project in in Riverside County, Calif., has long-term REC and energy agreements with an undisclosed company.
- Juno, a 425 MW project in Borden County, Texas, has long-term PPAs with the Lower Colorado River Authority and one undisclosed company.
- Titan, a 375 MW project in Culberson County, Texas, has a long-term PPA with an undisclosed company.
In total, the projects will support more than 3,000 jobs during construction. Once complete, the cumulative output of the five solar plants will power the equivalent of 357,000 homes and result in 2.75 million tons of avoided CO2 emissions per year, according to the partners.
“Intersect Power has created significant value by developing 1.7 GW of large solar projects in a short period of time,” comments Raman Nanda, CEO of SB Energy. “We look forward to starting construction on the projects early next year and providing low-cost solar energy to our commercial partners. With this acquisition, SB Energy will have 7.2 GW of solar and wind projects under long-term contract in the United States and India.”
Gibson Dunn & Crutcher LLP and Citi advised SB Energy, while Orrick, Herrington & Sutcliffe LLP, Greentech Capital Advisors and Scotiabank advised Intersect Power on various aspects of the development partnership and project acquisition.