Capital Dynamics, the Swiss asset supervisor and now heavyweight photo voltaic investor, will companion with vitality developer Tenaska on a four.Eight-gigawatt photo voltaic portfolio within the Midwest and the Southeast, the businesses introduced Wednesday.
The 2 will work collectively on creating 24 photo voltaic initiatives anticipated to come back on-line by 2023, which builds on a 2018 partnership to cooperatively develop one other 14 initiatives in six Midwestern states.
In February, Tenaska and Capital Dynamics unveiled one off-take contract related to the earlier group of initiatives, with the Indiana Municipal Energy Company. Tenaska declined to touch upon whether or not the brand new spherical of initiatives has discovered off-takers.
Neither Nebraska-based Tenaska nor Capital Dynamics focuses solely on clear vitality; Tenaska develops renewables and pure fuel and Capital Dynamics invests and develops photo voltaic, wind and storage by means of its Clear Vitality Infrastructure arm. However “technology-agnostic” Capital Dynamics informed Greentech Media earlier this 12 months that photo voltaic is more likely to grow to be more and more important for the corporate because of its stability and financial competitiveness.
Simply this 12 months Capital Dynamics has purchased up 353 megawatts of photo voltaic from Coronal Vitality, invested in 8minute Photo voltaic vitality’s 400-megawatt Eland solar-plus-storage challenge, and partnered with 8minute on one other 387-megawatt solar-and-storage plant. Capital Dynamics informed Greentech Media that some initiatives of its latest photo voltaic portfolio with Tenaska may even see storage connected.
For Tenaska, the four.Eight-gigawatt deal follows one other large-scale sale to Spain’s Acciona final 12 months, with Acciona shopping for three gigawatts of photo voltaic and 1 gigawatt of solar-and-storage from Tenaska within the U.S.
“We’ve traditionally developed our personal initiatives, however increasingly we’re seeing a requirement for our improvement experience within the renewable house,” stated Steve Johnson, senior vice chairman in Tenaska’s Strategic Growth & Acquisition Group.
The Acciona portfolio encompassed 20 initiatives that Tenaska and Acciona may also develop collectively. Except for the event actions of its guardian firm, affiliate Tenaska Photo voltaic Ventures says it’s labored on improvement of about 11 gigawatts of initiatives in 15 states.
The addition of this four.Eight-gigawatt portfolio brings Capital Dynamics’ clear vitality belongings to greater than 7.three gigawatts and 100 initiatives throughout the UK and 20 U.S. states, the corporate stated. Whereas the corporate has ties to initiatives within the Southwest, West and Southeast, the Midwest makes up a major share of the general portfolio. When Capital Dynamics signed its 2018 deal for two gigawatts of Midwestern initiatives with Tenaska, Benoit Allehaut, director of the corporate’s Clear Vitality Infrastructure workforce, famous the area as “a market poised for development.” Capital Dynamics declined to share specifics on the states by which the newest spherical of Tenaska initiatives will likely be positioned, nonetheless.
Photo voltaic accounts for a rising portion of latest technology within the Midwest, the place wind generators have lengthy been the dominant type of renewable energy. Photo voltaic will make up half or extra of capability additions by means of 2025, in keeping with Wooden Mackenzie Energy & Renewables.
“Photo voltaic is predicted to see 58 % compound annual development price in MISO from 2020 to 2025,” stated Colin Smith, a senior photo voltaic analyst at WoodMac. “Capital Dynamics is shifting right into a market [where] they assume they are often profitable and see a whole lot of development.”