Growth underway on 150-MW Indiana solar mission following PPA from electrical cooperative
The power and transmission cooperative Hoosier Energy signed a 150 MW power purchase agreement (PPA) for the Ratts 2 solar project owned by Capital Dynamics CEI in Knox County, Indiana. Arevon Energy Management and Tenaska are developing this project together. Construction is expected to start in 2022. Commercial operation is expected in 2023.
“Hoosier Energy’s PPA with Capital Dynamics is an important step in our long-term plan to add a variety of projects to our energy portfolio that aim to cut costs for our members and reduce our carbon footprint,” said Donna Walker , President and CEO of Hoosier Energie.
Knox County Council unanimously approved the Economic Development Agreement for the Ratts 2 solar project in October 2020. The county has also passed a solar ordinance that governs certain technical aspects of the project. Under the agreement, the project will pay $ 2.5 million in economic development payments to Knox County over a six-year period.
“We are extremely pleased that Knox County has supported the Ratts 2 solar project and we are grateful for their partnership,” said Martin Hahn, CEO of Capital Dynamics. “This project will bring Knox County jobs, tax revenue, lease payments for landowners, and a wide range of additional economic benefits. We look forward to working with the county and the Arevon Energy Management and Tenaska teams to bring affordable, clean energy to this community. “
Ratts 2 is expected to generate an estimated $ 16 million in tax revenue over the life of the project. According to an economic study by the Gnarly Tree Sustainability Institute, the Ratts 2 solar project contributes an estimated $ 20.9 million to Knox County’s gross domestic product during construction and $ 941,000 annually once the solar project is operational.
“Arevon Energy Management was pleased to play an important role in structuring this agreement so that Hoosier Energy can benefit from cost savings and achieve its goal of reducing carbon emissions,” said Tiago Sabino Dias, President and CEO of Arevon Energy Management. “Hoosier Energy has been a long-term partner and we appreciate their efforts to improve their generation mix that offers its members energy savings and reliability.”
Ratts 2 will bring 188 full-time construction jobs, full-time operations and maintenance workers, and more than $ 363,000 in annual merchandise expenses over the project’s expected 35 year lifespan. The project will also pay an estimated $ 1 million annually to local landowners.
“It is gratifying to see utility companies like Hoosier Energy recognizing the environmental and cost benefits of renewable energy and quickly taking action to add more renewable energies to their generation mix,” said Steve Johnson, senior vice president of Strategic Development & Acquisitions Group in Tenaska. “The Tenaska Solar Ventures team looks forward to working with Capital Dynamics to complete development and bring this project to life.”
New article from Capital Dynamics