Google has agreed to provide financing in the form of tax equity for the construction of Red Hills, a 104-megawatt (MW) solar power plant located in Utah and estimated to cost $188 million, Scatec Solar, the Oslo-based company developing the project, said in a recent statement.
The US technology giant has agreed to invest up to $84 million in the project, a company spokesperson told Infrastructure Investor.
Google and Scatec Solar will own the solar power plant through a jointly-owned partnership, while Scatec Solar will manage and operate the plant when it becomes operational by the end of 2015.
Once completed, the Utah Red Hills Renewable Energy Park will be the largest solar energy generation facility in the state with the capacity to power 18,500 homes annually, according to the statement. The electricity generated will be sold under a 20-year power purchase agreement (PPA) to PacifiCorp’s Rocky Mountain Power.
The Norwegian company, which is listed on the Oslo Stock Exchange, has also entered into a financing agreement with Prudential Capital Group, an asset management business of Prudential Financial, which will be providing debt financing of $73 million. Scatec Solar will provide the sponsor equity.
For Google, the transaction represents its 18th investment in the renewable energy sector. To date, the US company has invested more than $1.5 billion in renewable energy projects around the world with a total planned capacity of 2.5 gigawatts (GW). Its aim is to eventually operate on 100 percent renewable energy.
