US Solar Fund to acquire 128MW Milford Solar Project from Longroad Energy

Solar acquisition news : US Solar Fund, a UK-based investment company, has signed an agreement to acquire the 128MW Milford Solar Project to be built in Utah from Longroad Energy Partners.

The electricity generated from the Milford Solar Project, which is expected to be commissioned in the second half of 2020, will be sold completely to an undisclosed offtaker at a fixed rate set in a 25-year power purchase agreement (PPA).

US Solar Fund plans to employ an engineering procurement and construction contractor (EPC) with a 150-year track record in the US to build the new solar project in Utah on a fixed time and fixed cost basis.

The Milford Solar Project will be equipped with the Series 6 solar panels from First Solar whose energy services unit, under a separate contract, is likely to be responsible for long-term operations and maintenance services.

US Solar Fund expects to fund the acquisition of the Milford Solar Project through cash equity contribution of nearly $30 million and $50 million in non-recourse bank debt finance and balance via tax equity.

Longroad Energy to sell Milford Solar Project in Utah to US Solar Fund. Photo courtesy of andreas160578 from Pixabay.

Gillian Nott – Chairman of US Solar Fund, commenting on the US Solar Fund acquisition of Milford Solar Project, said: “We are delighted to have signed this acquisition agreement for the first of our pipeline investments within just over three months of our IPO. The Milford Solar Project, with its 25-year contracted cashflows and A-rated offtaker, provides a strong, long-term foundation for USF’s portfolio.

“The Company has an extensive pipeline of high-quality assets in which we expect to continue deploying our IPO proceeds in the coming months.”

US Solar Fund acquisition of the Milford Solar Project is anticipated to be wrapped up later this year along with the financial closing of debt ad tax equity financing.

Commenting on the US Solar Fund acquisition of Milford Solar Project, Liam Thomas – Chief Investment Officer of US Solar Fund’s investment manager New Energy Solar Manager, said: “Since USF’s IPO in April we have been focused on converting pipeline opportunities into acquisitions for the Company. The highly contracted nature of the Milford project makes it an ideal first acquisition, and we are excited to partner with such an experienced developer in Longroad. We look forward to announcing further acquisitions in due course.”

The investment company got listed on the London Stock Exchange in April 2019, after completing a $200 million IPO. US Solar Fund will focus on investing in a diversified portfolio of solar power assets across North America and other OECD countries in the Americas.

The investment company plans to acquire or construct, own and operate solar power assets that will have an asset life of more than 30 years and can deliver stable and uncorrelated cashflows by selling electricity to offtakers under long-term power purchase agreements.

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