Duke Secures Financing for Texas Solar Project

For the second time in three weeks, Duke Energy announced the financing of assets in its commercial renewable power portfolio. Duke Energy Generation Services (DEGS) has raised approximately US $45 million by leveraging its ownership of the 14-megawatt Blue Wing Solar Project, currently under construction in San Antonio, Texas. Prudential Capital Group provided the 25-year loan.

“This financing is another important milestone for Duke Energy as we continue to build a portfolio of high-quality commercial renewable power projects,” said Greg Wolf, DEGS senior vice president for business development. “We’re demonstrating our capacity to deliver and execute on every aspect of a successful solar photovoltaic project, including the judicious deployment of Duke Energy’s capital.”

When completed later this year, Blue Wing will consist of 214,500 ground-mounted First Solar thin-film panels, making it the largest photovoltaic (PV) project in Texas.

DEGS purchased the 139-acre project from juwi solar in the first quarter of 2010. Juwi solar is the construction contractor for the project.

The acquisition came with a 30-year power purchase agreement to sell all of the output from the solar farm and associated renewable energy credits to San Antonio-based CPS Energy, one of the largest municipality-owned utilities in the U.S.

Blue Wing will be DEGS’ second commercial PV solar project. The company already owns and operates a 1-megawatt (MW) solar farm in Shelby, North Carolina, and is developing other potential solar projects across the U.S.

In late May 2010, DEGS announced that it had secured a 15-year term loan of approximately $325 million and letters of credit totaling roughly $50 million by leveraging its interests in five of its commercial wind farms.

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