Dominion offloads to SunEdison
Energy giant sells 33% of solar capacity, agrees JV for project in Utah
Dominion has agreed to sell SunEdison 33% of its 425MW of solar generating capacity for $300m and set up a joint venture with the company to develop the 210MW Three Cedars solar project in Utah.
The deal is subject to working capital and certain other adjustments and SunEdison has a future option to buy all or a portion of Dominion’s remaining 67% ownership.
Included in the agreement are 24 projects in California, Connecticut, Georgia, Indiana, Tennessee and Utah.
Fifteen of the projects entered service in 2013 and 2014, with the remaining projects either having been completed or have expected in-service dates in 2015.
All the projects have long-term power purchase agreements (PPAs) with local electricity providers.
Dominion said it expects to pay down debt with the cash proceeds.
The transaction requires approval by the Federal Energy Regulatory Commission.
SunEdison will oversee construction of the Three Cedars project and day-to-day operation of the facility once it has come online, which is expected in 2016.
Three Cedars consists of three sites located in Iron County, Utah, and has 20-year PPAs, interconnection agreements and engineering, procurement and construction contracts.
Dominion chairman, president and chief executive officer Thomas Farrell said: “We began acquiring and developing long-term contracted solar projects in 2013 to build the knowledge and expertise in constructing, owning and operating utility-scale solar power before bringing that technology to Virginia.
“Meanwhile, during the past decade Dominion has worked to reduce risk and divest non-core assets and businesses. Our focus is shifting from constructing contracted solar to constructing utility solar in Virginia, where we expect to develop 400MW of generating capacity by 2020.”
Image: Dominion's Somers solar centre (Dominion)