Capital Dynamics and Hoosier Energy today announced the signing of a long-term Power Purchase Agreement (PPA). Therefore, Hoosier will purchase 150-megawatts (MW) of the Ratts 2 Solar Project’sProject’s power. In fact, this is a CEI-owned greenfield solar project currently under construction in Knox County, Indiana.
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Capital Dynamics and Hoosier Energy: new PPA
Earlier today, Capital Dynamics and Hoosier Energy announced the signing of a long-term PPA. Therefore, Hoosier will purchase 150-MW of the power generated by the Ratts 2 Solar Project.
Clean Energy Infrastructure (CEI) business line of Capital Dynamics, an independent global private asset management firm, and Hoosier Energy, a generation and transmission cooperative. Both companies will be in charge of the project.
Moreover, Arevon Energy Management and Tenaska are co-developing this project. Besides, they participated in procuring and negotiating the terms of the PPA. Therefore, construction is expected to begin in 2022, with commercial operation anticipated in 2023.
“Hoosier Energy’s PPA with Capital Dynamics is an important step toward achieving our long-range plan of adding diverse projects to our energy portfolio. Simultaneously, focusing on lowering costs for our members and reducing our carbon footprint,” said Hoosier Energy President and CEO Donna Walker.
Besides, Martin Hahn, CEO of Capital Dynamics, said, “We are extremely pleased that Knox County has been so supportive of the Ratts 2 Solar Project and are grateful for their partnership.”
Furthermore, “this project will bring jobs, tax revenue, landowner lease payments and a wide range of additional economic benefits to Knox County. Thus, we are looking forward to working with the county and the teams at Arevon Energy Management and Tenaska to bring affordable, clean energy to this community.”
“Arevon Energy Management was pleased to play an instrumental role in structuring this agreement and achieve Hoosier Energy’s carbon emissions reduction goal,” said Tiago Sabino Dias, President and CEO of Arevon Energy Management. Moreover, “Hoosier Energy has been a long-time partner; we applaud their efforts to improve their generation mix that will offer energy savings and reliability to their members.”
The Knox County Council unanimously approved the Ratts 2 Solar Project’s economic development agreement in October 2020. Besides, the county finalized a solar ordinance to guide certain technical aspects of the project. Furthermore, under the agreement, the project will pay $2.5 million in economic development payments to Knox County over six years.
Moreover, Ratts 2 is expected to contribute an estimated $16 million in tax revenue over the project life. Also, it will bring 188 full-time construction jobs, full-time operations and maintenance employees; and annual expenditures on goods over $363,000 over the project’s expected 35-year lifespan.
Finally, the project will also pay an estimated $1 million lease payments annually to local landowners.