Capital Dynamics CEI, the Clean Energy Infrastructure business line of Capital Dynamics, an independent global private asset management firm, and Hoosier Energy, a generation and transmission cooperative, today announced the signing of a long-term Power Purchase Agreement.
Under the terms of the PPA, Hoosier Energy will purchase 150-megawatts (MW) of the power generated by the Ratts 2 Solar Project, a CEI-owned greenfield solar project that is currently being developed in Knox County, Indiana. Arevon Energy Management and Tenaska are co-developing this project and were instrumental in procuring and negotiating the terms of the PPA. 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 that focus on lowering costs for our members and reducing our carbon footprint,” said Hoosier Energy President and CEO Donna Walker.
“We are extremely pleased that Knox County has been so supportive of the Ratts 2 Solar Project and are grateful for their partnership,” said Martin Hahn, CEO of Capital Dynamics. “This project will bring jobs, tax revenue, landowner lease payments and a wide range of additional economic benefits to Knox County. 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 so that Hoosier Energy can benefit from cost savings and achieve its carbon emissions reduction goal,” said Tiago Sabino Dias, President and CEO of Arevon Energy Management. “Hoosier Energy has been a long-time partner and we applaud their efforts to improve their generation mix that will offer energy savings and reliability to their members.”
“It’s gratifying to see utilities like Hoosier Energy realize the environmental and cost benefits of renewables and take swift action to add more renewables to their generation mix,” said Steve Johnson, senior vice president in Tenaska’s Strategic Development & Acquisitions Group. “The Tenaska Solar Ventures team looks forward to working with Capital Dynamics to complete development and bring this project to fruition.”
The Knox County Council unanimously approved the economic development agreement for the Ratts 2 Solar Project In October 2020. The county also finalized a solar ordinance to guide certain technical aspects of the project. Under the agreement, the project will pay $2.5 million in economic development payments to Knox County over a six-year period.
Ratts 2 is expected to contribute an estimated $16 million in tax revenue over the project life. According to an economic study conducted by Gnarly Tree Sustainability Institute, the Ratts 2 Solar Project is estimated to contribute $20.9 million to the Knox County Gross Domestic Product (GDP) during construction and $941,000 annually once the solar project is operational. It will bring 188 full-time construction jobs, full-time operations and maintenance employment, and annual expenditures on goods in excess of $363,000 over the project’s expected 35-year lifespan. The project will also pay an estimated $1 million lease payments annually to local landowners.