Clearway Starts Construction on Texas Solar and Storage Projects
California-based Clearway Energy Group said it has closed financing and started construction of standalone solar and energy storage projects in Hopkins County, Texas.
The company on October 2 said the 300-MW Pine Forest solar and 200-MW Pine Forest storage installations represent a $665 million investment. Dell Technologies has agreed to buy much of the electricity from the solar project under a long-term virtual power purchase agreement, which Dell said will support its climate goals. Universal Corp., an agricultural products supply company, also has contracted to offtake some of the solar project’s power.
Clearway on Wednesday said the projects will reach commercial operation in 2025. Officials said Clearway also is in discussions with corporate entities on the transfer of certain clean energy tax credits associated with the projects.
Dell said Pine Forest is expected to provide enough renewable energy to meet most of the company’s U.S. power needs, noting that it aligns with the group’s global sustainability goal of sourcing 75% of its electricity from renewable sources by 2030, and 100% by 2040.
Project Financing
Clearway said financing for the projects comes from a consortium including Société Générale; Australia and New Zealand Banking Group Limited, New York Branch; Banco Bilbao Vizcaya Argentaria S.A., New York Branch; Commerzbank AG, New York Branch; and KeyBanc Capital Markets Inc. and Lloyds Bank Plc.
Officials said the energy storage system is designed to provide grid flexibility by storing excess power and dispatching it during periods of high demand for electricity.
“Our Pine Forest projects represent a major investment in grid reliability in Texas,” said Brooks Friedeman, vice president of Capital Markets at Clearway. “We value the financial support that our consortium of banks has provided to start construction of the Pine Forest projects.”
Valerie Wooley, senior vice president of Origination at Clearway, said, “We are also grateful to our corporate customers of our Pine Forest Solar project, the Hopkins County community, our committed landowners, and our many other partners who have contributed to the success of these projects.”
Environmental Impact
Mark Pringle, senior vice president of Global Facilities and EHS for Dell Technologies, said, “The Pine Forest solar project marks a pivotal step in Dell Technologies’ journey towards achieving net-zero emissions by 2050. With this contract, we’re supporting the introduction of a significant amount of clean energy into the grid and expanding our renewable energy procurement as the project is projected to address most of our U.S. energy needs. Together with Clearway, we are not only envisioning a sustainable future, but actively building it. As part of our strategy, we continue to explore additional avenues to advance sustainability, ensuring our operations remain efficient, responsible, and innovative.”
George C. Freeman III, chairman, president, and CEO of Universal Corp., in a statement said its portion of the renewable energy from Pine Forest will contribute to the company’s emissions reduction targets.
“This is a meaningful step towards meeting our worldwide science-based environmental target to reduce operational greenhouse gasses emissions by 30% by 2030,” said Freeman. “When the solar project is operational, we expect to hit this target for our U.S. operations ahead of schedule. Universal is proud of the steps we are taking to promote the sustainability of our operations and contribute to global sustainability goals, including supporting this project that will bring additional renewable energy to the electricity grid.”
Officials said the Pine Forest projects will support an estimated 350 construction jobs and several permanent operations positions. The projects also are expected to generate more than $58 million in property taxes over the next 20 years.
“We are extremely excited about this project and the financial value that it brings to our school district,” said Dr. Greg Bower, superintendent of Como-Pickton Consolidated Independent School District. “We will finally be able to build new facilities for our students as a result of the revenue generated from these projects. Our students not only benefit from the electricity generated from the solar panels, but they get to learn in buildings that were built as a result of the added property value the solar panels bring.”
—Darrell Proctor is senior editor for POWER (@POWERmagazine).