US Solar Fund Plc, a UK-based infrastructure investment fund, has reportedly inked an agreement with Southern Current LLC, a U.S based solar energy contractor, to purchase a 61 MW utility-scale solar photovoltaic portfolio in Oregon.
Following this agreement, US Solar Fund will get access to Southern Current Portfolio that comprise of four solar parks that are currently under development. The new power plants are expected to commence operations in Q2 and Q3 of 2020 and sell their power output under long-term PPA (power purchase agreement) with an investment-grade offtaker.
Additionally, US Solar Fund is looking forward to ink a binding agreement for the purchase once due diligence is finished. The company expects the acquisition to be finalized during the first half of 2020.
Sources cite that equity funding for the procurement will come from cash in hand left from the company’s IPO (initial public offering ). Those proceeds were targeted to refinance its Heelstone portfolio, whereas the flexibility of timing of this transaction allows the company to persuade other deals with available cash. However, US Solar Fund could raise additional equity for refinancing.
In a similar move, last month, US Solar Fund announced plans to buy a 177MW portfolio from an affiliate of Heelstone Renewable Energy for an unrevealed amount. The projects situated in California, Oregon, North Carolina and began operations between the years 2016 and 2018.
The projects sell their power output under long term and fixed-priced PPAs. US Solar Fund claims that it would fund the equity purchase price for the portfolio procurement with existing cash.
US Solar Fund for the record is a renewable energy fund dedicated to offering sustainable, attractive dividends to investors along with an element of capital growth with the company’s investment in a comprehensive portfolio of solar energy plants across OECD and North America countries.