Danish renewable power giant said on July 9 company has acquired the 227MWac under construction Muscle Shoals solar project located in Colbert County, Alabama, in the US. Concurrent to the acquisition, Ørsted enters into a tax equity funding commitment with Wells Fargo, Ørsted said in a press release.
The project will be Ørsted’s second solar project in the US, following the decision in November 2019 to commence construction of the Permian Energy Center solar plus storage project in Texas. Following the acquisition of Muscle Shoals, Ørsted will have two solar projects totaling 647MWac of generation capacity under construction across the US along with 40MWac of storage capacity, the company said.
Muscle Shoals is expected to come online in third quarter 2021. The modules for the project will be supplied by First Solar.
“The acquisition of Muscle Shoals continues the expansion of our solar portfolio and further diversifies the geographic footprint of our asset base by establishing a foothold in the rapidly growing Southeast solar market,” Ørsted Senior Vice President & CFO Onshore Vishal Kapadia said. “Once complete, Muscle Shoals will deliver high-quality contracted revenues that will provide Ørsted an attractive incremental source of stable earnings.”
The acquisition of the project, which is fully contracted under a long-term power purchase agreement with the Tennessee Value Authority (TVA), marks the first project in southeast US, an area in which we have a further pipeline of projects in development.