It’s been a big year for Recurrent Energy and the pace is quickening as we approach the end of the year. We’re excited to be making our second announcement with Google and KKR. Today, we announced that Google and KKR are investing in a portfolio of six utility-scale solar PV projects developed by Recurrent Energy.
Located in California and Arizona, the projects will have a peak capacity of 106 MWp (88 MWac), delivering clean electricity to several utilities and municipalities. The projects will generate enough solar electricity to power the equivalent of over 17,000 U.S. homes.
Five of the projects are located in Southern California. The sixth is in Arizona. Together they will provide power to three offtakers, including Southern California Edison. Construction is underway on all six sites, which will be operational by January 2014.
We made a similar announcement in December of 2011, when Google and KKR invested in four of our utility-scale solar facilities in Northern California, serving Sacramento Municipal Utility District.
One of the things that I’m happy about with this announcement is the continued success of our partnership with Google and KKR. As I mentioned, this is our second deal with both of them. Today’s announcement reflects how well all three of us work together. It also underlines both KKR’s and Google’s strong commitment to a clean energy future. Prudential Capital Group, also a long time partner to Recurrent Energy, provided the construction and term debt financing for this portfolio.
To date, Google has committed over $1 billion to renewable energy across a wide range of technologies, from off-shore transmission to the world’s largest wind and solar power projects. KKR also continues to make renewable energy investments worldwide and have a solid focus on growing clean energy resources in North America.
Both Google and KKR are playing an important role helping solar continue its move into mainstream electric power. In particular, tax equity continues to be a challenging but essential financial ingredient for solar projects to achieve success. Google and KKR have made and continue to make the commitments that help solar projects reach the finish line in the development process, bringing more clean electricity onto the grid.
These projects are part of the 315MW Recurrent Energy is delivering to operating status this year, which brings our total operating portfolio to well over half a gigawatt. We’ve got over 700MW signed with utilities so we’ve got a lot more announcements like this coming.
Naturally, this kind of milestone brings a tremendous amount of satisfaction for me personally and for the broader Recurrent Energy team. It’s hard to describe the feeling of seeing years of development finally result in operating projects that are delivering clean, affordable electricity to the grid.