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NextPower III, NextEnergy Capital’s (“NEC”) third institutional solar fund, is pleased to announce the signing of two Power Purchase Agreement (PPA) contracts with Shell Energy North America (NA), L.P. (“Shell Energy”). The sale includes c.62GWh p.a. (approximately 90% of energy generation) for a period of 10 years and an equivalent amount of Renewable Energy Certificates for a period of five years.
“The execution of these long-term contracts is a landmark for NextPower III and is all the more significant for having been achieved against the backdrop of COVID-19 and the associated oil shocks,” commented Lorena Ciciriello, Managing Director and Head of Debt Financing at NextEnergy Capital. “Virginia has historically been a coal-centric state and we are delighted that these solar projects will support Dominion Energy Virginia’s 16GW IRP target over the next fifteen years.”
- The Portfolio of 45MW is comprised of two projects, Briel Farm and Gardy’s Mill, located in Henrico and Westmoreland Counties respectively, in the State of Virginia;
- These projects are part of NextPower III’s 250MW portfolio in the US and are connected to Dominion’s distribution network;
“At Shell Energy we are dedicated to delivering more and cleaner energy solutions to our customers in a responsible way,” said Glenn Wright, President of Shell Energy North America. “We’re proud to be working with NextEnergy Capital to enable further development of renewable energy assets that provide the kind of energy solutions that society demands.”
- The Briel Farm and Gardy’s Mill projects will sell energy and Renewable Energy Certificates in the PJM Market and will benefit from Capacity Market revenues secured via auctions;
- The construction of both plants is underway with expected commissioning by the end of the year.
“We have established a long-term relationship with Shell Energy,” said Jean-Baptiste Bonnaud, Vice President in NextEnergy Capital’s Investment Team added, “thanks to our unique solar PV expertise and leveraging the experience of our Energy Sales team headed by Paul Barwell.”
Dan Lynch, Partner at Akin Gump which served as Legal Advisor in the negotiations and structuring of these Agreements, added, “We are happy to be partnered with NextEnergy Capital on this portfolio of assets and believe Shell Energy will be a valued offtake partner. This relationship demonstrates how NextEnergy Capital are forward-looking and leading the charge with their investment strategy in clean energy.”