EDF Power Solutions North America announced on September 17 that it had secured financing for the Utah Solar 1 project, a significant milestone that clears the path for the construction of a 300 MW utility-scale solar plant in Millard County, Utah. The project is expected to deliver power to Los Angeles by mid-2027. The financing package was secured from a consortium of international banks, including Crédit Agricole CIB, MUFG Bank, National Bank of Canada, Société Générale, and Standard Chartered Bank.
The Utah Solar 1 project will occupy approximately 1,750 acres of state-owned land overseen by the Utah Trust Lands Administration. During the peak construction phase, the project is expected to employ around 400 workers, providing a significant boost to the local economy. The solar farm is designed to generate approximately 766,000 MWh of electricity annually, which will be sold to the Los Angeles Department of Water and Power.
The development of the Utah Solar 1 project is expected to have a positive impact on the local economy, with EDF estimating that it will generate over $40 million in local tax revenue for Millard County and $27 million in lease payments to the Utah Trust Lands Administration over its operating life. The project's financing was structured with MUFG acting as administrative agent and Crédit Agricole as the initial coordinating lead arranger.
The Utah Solar 1 project has secured a 30-year power purchase agreement with the Southern California Public Power Authority, which will sell the electricity, capacity, and environmental attributes to the Los Angeles Department of Water and Power. The agreement sets a target commercial operation date of June 30, 2027, and a guaranteed date of June 30, 2028. The project's annual generation is expected to supply power to Los Angeles customers rather than meeting local demand in Millard County.
With financing secured, the next major milestone for the Utah Solar 1 project is the start of full-scale construction, followed by commissioning ahead of the planned mid-2027 power-delivery date. The project's development is a significant step towards increasing the use of renewable energy in the United States, particularly in California, which has set ambitious targets for reducing greenhouse gas emissions.
The Utah Solar 1 project is a notable example of international cooperation in the renewable energy sector, with a consortium of global banks providing financing for the project. Crédit Agricole CIB, MUFG Bank, National Bank of Canada, Société Générale, and Standard Chartered Bank all played a role in securing the financing package, which will support the development of a major utility-scale solar plant.
The successful financial close of the Utah Solar 1 project demonstrates the growing interest in large-scale renewable energy projects in the United States. As the country continues to transition towards a low-carbon economy, projects like Utah Solar 1 will play an increasingly important role in reducing greenhouse gas emissions and meeting ambitious renewable energy targets.
Key points
- The Utah Solar 1 project will generate approximately 766,000 MWh of electricity annually, supplying power to Los Angeles customers.
- The project is expected to employ around 400 workers during the peak construction phase and generate over $40 million in local tax revenue for Millard County.
- The Utah Solar 1 project has secured a 30-year power purchase agreement with the Southern California Public Power Authority, with a target commercial operation date of June 30, 2027.
