Shell Energy North America has signed two new 10-year power purchase agreements with NextEnergy Capital’s NextIII solar fund for approximately 62 GWh per year.
The two 10-year agreements include an equivalent amount of renewable energy certificates for a period of five years. They account for 90% of the generation capacity of two of NextEnergy’s recently operational solar plants in the state of Virginia – Briel Farm and Gardy’s Mill, located in Henrico and Westmoreland Counties respectively.
The plants, with a combined capacity of 45MW, are part of NextPower III’s 250MW US solar portfolio.
“The execution of these long-term contracts is a landmark for NextPower III and is all the more significant for having been achieved against the backdrop of COVID-19 and the associated oil shocks,” commented Lorena Ciciriello, Managing Director and Head of Debt Financing at NextEnergy Capital.
“Virginia has historically been a coal-centric state and we are delighted that these solar projects will support Dominion Energy Virginia’s 16GW IRP target over the next fifteen years.”
Glenn Wright, President of Shell Energy North America, said: “At Shell Energy, we are dedicated to delivering more and cleaner energy solutions to our customers in a responsible way. We’re proud to be working with NextEnergy Capital to enable further development of renewable energy assets that provide the kind of energy solutions that society demands.”
Both projects will sell into the PJM Market and benefit from Capacity Market revenues secured via auctions.
“We have established a long-term relationship with Shell Energy,” said Jean-Baptiste Bonnaud, Vice President in NextEnergy Capital’s Investment Team.
Dan Lynch, from law firm Akin Gump which served as legal advisor in the negotiations, added: “We are happy to be partnered with NextEnergy Capital on this portfolio of assets and believe Shell Energy will be a valued offtake partner.”