Lightsource bp, a global developer and manager of solar energy projects, has partnered with Nephila Climate to enter into a proxy power purchase agreement (pgPPA) with the Capital Solutions unit of Allianz Global Corporate & Specialty (AGCS). The pgPPA refers to electricity generated by Lightsource bp's 153 MW Briar Creek solar farm in Navarro County, Texas.
A pgPPA is a contract structure for renewable energies to manage weather-related risk. A pgPPA is similar to a virtual PPA, except that it pegs the power on a proxy generation index rather than the generation being measured. Proxy generation is an hourly index that indicates the volume of energy a project would have generated if it had been operated as specified by the developer or owner.
"AGCS is pleased to work with Lightsource bp on this new type of hedging structure for renewable energies and the risk management tool," says Vijay Suchdev, Managing Director at AGCS. "We are determined to work with our partners to meet their sustainability goals and support the long-term global growth of renewable energy."
The Briar Creek solar project will provide local economic benefits to the Dallas Fort Worth area that go beyond clean and economical electricity. The project will:
– Generate approximately $ 19.7 million in real estate tax revenue for Navarro County over his lifetime to benefit local schools and other public services
– Create approximately 250 jobs during construction, with local labor and service requirements included in construction contracts
– US $ 152 million private equity investment in new local energy infrastructure for Texas
REsurety Inc. has provided analytics in support of the transaction and will act as the calculation agent for the life of the contract. The Briar Creek solar farm, located approximately 40 miles south of Dallas, is expected to go into commercial operation in late 2021.