Duke Energy Buys 200-Megawatt Solar Project in Texas

Duke Energy Renewables LLC on July 22 announced the purchase of its largest solar energy project, a 200-megawatt facility, which is being developed by 8minute Solar Energy in Texas. The solar farm, which is expected to be complete in the summer of 2020, will sell much of its output through a 12-year hedge agreement to J. Aron & Company LLC., a subsidiary of Goldman Sachs.

The Holstein solar project, which began construction this summer, consists of about 709,000 solar panels spanning an area of 1,300 acres in Wingate. The facility, Duke Energy’s third solar farm in Texas, will power the equivalent of 40,000 homes.

Utility-scale solar developer 8minute Solar Energy led the development of the project, bringing counterparties for construction, operations, hedge, tax equity and debt, according to Duke Energy. SunTrust is providing a tax equity investment, while CIT Group and a consortium of banks are providing a construction loan, letter of credit and term loan facility. Duke Energy said that the Holstein project is its first solar facility to utilize a hedge agreement.

Duke Energy Renewables is a subsidiary of Duke Energy Corporation. The acquisition supports Duke Energy’s goal to own or purchase 8 gigawatts of wind, solar and biomass capacity by 2020.