EDF power solutions North America is moving into the construction phase for its Utah Solar 1 project after reaching a critical financial close. The 394 MWdc / 300 MWac solar facility, located in Millard County, Utah, is positioned to deliver electricity to the grid by mid-2027. This development secures long-term renewable capacity for Southern California through a structured multi-bank financing package and a long-term power purchase agreement.
Financing Structure for Utah Solar 1
The project's capital is secured through credit facilities provided by a consortium including Crédit Agricole CIB, MUFG Bank, Ltd., National Bank of Canada, Societe Generale, and Standard Chartered Bank. MUFG Bank, Ltd. served as the Administrative Agent, while Crédit Agricole CIB acted as the Initial Coordinating Lead Arranger. A notable component of the deal is a tax credit bridge facility, with Crédit Agricole CIB acting as the sole buyer of the project's Production Tax Credits (PTC). This specialized financing structure allows the developer to bridge the gap between construction and the realization of tax incentives, a common necessity in large-scale solar deployments.
Long-Term Offtake and Regional Impact
The facility is anchored by a 30-year power purchase agreement with the Southern California Public Power Authority (SCPPA). This agreement ensures that the estimated 766,000 MWh of annual electricity generation will serve customers of the Los Angeles Department of Water and Power (LADWP). Beyond grid stability, the project is expected to drive local economic activity in Millard County. During peak construction, the company anticipates employing approximately 400 workers. Furthermore, the project is projected to generate more than $40 million in local tax revenue for Millard County and $27 million in lease revenue to the Utah Trust Lands Administration over its operational life.
Key Takeaways
- The Utah Solar 1 project will have a capacity of 394 MWdc / 300 MWac and is slated for electricity delivery in mid-2027.
- A 30-year power purchase agreement with SCPPA will supply approximately 766,000 MWh of electricity annually to LADWP customers.
- Financing was provided by a consortium including MUFG Bank, Ltd., Crédit Agricole CIB, National Bank of Canada, Societe Generale, and Standard Chartered Bank.
EnergyInsyte's Take
In our view, this transaction highlights the continued importance of sophisticated tax credit structuring in large-scale renewable projects. By securing Crédit Agricole CIB as the sole buyer of the Production Tax Credits through a bridge facility, EDF power solutions North America has effectively mitigated one of the primary financial risks in solar development. This deal signals that despite market volatility, long-term utility-scale offtake agreements with entities like LADWP remain a cornerstone for attracting diverse international banking syndicates to US-based solar assets.
Questions & Answers
How will the project's tax incentives be managed during construction?
The project utilizes a tax credit bridge facility, with Crédit Agricole CIB acting as the sole buyer of the Production Tax Credits (PTC) generated by the facility.
What is the scale of the energy supply for Southern California?
The facility is expected to generate an estimated 766,000 MWh annually, which will be delivered to customers of the Los Angeles Department of Water and Power (LADWP) via a 30-year agreement with SCPPA.
What are the projected economic contributions to Utah?
The project is projected to generate over $40 million in local tax revenue for Millard County and $27 million in lease revenue to the Utah Trust Lands Administration.
When is the Utah Solar 1 project expected to be operational?
Electricity delivery from the 394 MWdc / 300 MWac facility is currently slated to begin in mid-2027.
Source: Businesswire
