Lightsoure bp secures progressive ‘proxy technology’ PPA for 153-MW Briar Creek solar farm
Lightsource bp has signed a proxy power generation contract (pgPPA) with the Capital Solutions unit of Allianz Global Corporate & Specialty (AGCS) in collaboration with Nephila Climate. The pgPPA is designed for power generated by Lightsource bp’s 153 megawatt Briar Creek solar farm in Navarro County, Texas.
What is a pgPPA? A pgPPA is an innovative contract structure for renewable energies to manage weather-related risk. A pgPPA is similar to a virtual PPA, except that it pegs the energy on a proxy generation index rather than on the generation being measured. Proxy generation is an hourly index that indicates the volume of energy a project would have generated if it had been operated as specified by the developer or owner. REsurety, Inc. has provided analytics in support of the Transaction and will act as the Calculation Agent for the life of the Agreement.
“AGCS is delighted to be working with Lightsource bp on this novel renewable energy hedging structure and risk management tool,” said Vijay Suchdev, Managing Director at AGCS. “We are determined to work with our partners to achieve their sustainability goals and support the long-term global growth of renewable energy.”
The Briar Creek solar farm, located approximately 40 miles south of Dallas, is expected to go into commercial operation in late 2021.
“This deal is a great example of the development of renewable energy products here in the US,” said Kevin Smith, CEO of Lightsource bp in America. “Innovative power contract structures such as PPAs for virtual and proxy generation are valuable tools with which we can meet the requirements of our corporate partners, manage risks and continue to finance and build new solar projects for our low-carbon future.”
The solar project will also provide local economic benefits that go beyond clean and economical electricity for the Dallas Fort Worth area. The project is expected to generate $ 19.7 million in real estate tax revenue for Navarro County over the course of its life, which will benefit local schools and other public services. Around 250 jobs will be created during construction, with local labor and service requirements included in the construction contracts.