US energy companies SunEdison and Dominion have expanded their joint venture (JV) to include the 210-megawatt AC Three Cedars solar project.
The project in Utah is being developed by SunEdison and is the second to be taken up by the JV after Four Brothers solar project in Utah. Dominion had invested in the 420 megawatt DC project.
According to a statement, Three Cedars is covered by a power purchase agreement for 20 years with PacifiCorp, a subsidiary of Berkshire Hathaway Energy.
The project currently under construction has been fully financed and is expected to go into commercial operation by the middle of next year.
The statement adds that Dominion will be investing about $320 million to acquire half the cash equity and 99 percent of the tax equity in Three Cedars, including funding of construction, in accordance with the terms of the expanded JV.
In its turn, SunEdison would meet balance capital investment of $80 million in Three Cedars through a loan from Deutsche Bank through construction and long-term ownership.
Aggregately Dominion has invested about $830 million in the joint venture to acquire 50 percent of cash equity and 99 percent of tax equity in Four Brothers and Three Cedars; it includes funding of construction.
SunEdison, in turn, owns 50 percent interest in Four Brothers and Three Cedars by way of Call Right Projects List for its yieldco TerraForm Power.
Three Cedars is expected to produce adequate electricity to meet average requirements of 36,000 homes.
In another development, SunEdison and the infrastructure investments group of JP Morgan Asset Management have announced a strategic partnership to fund renewable energy projects of Dominion in both operating and construction stages.
Initially the partnership will invest the equivalent of 33 percent interest in a 425 MW AC portfolio of diverse, domestic solar assets of Dominion.
Ajith Kumar S