7X Energy Inc., a utility-scale solar developer, owner, and asset manager, has sold its 130 MW AC Elara energy project in Frio County, Texas, covering over 1,700 acres KOMIPO America Inc., the US subsidiary of Korea Midland Power Co. Ltd., one of the largest energy companies in Korea.
Morgan Stanley Renewables Inc. is expected to be the sole tax equity investor in the Elara Project. CohnReznick Capital acted as financial advisor to 7X and assisted with capital formation and structuring. Elara is currently under construction and is expected to reach full commercial operation in the fourth quarter.
Elara's energy and environmental attributes are sold under three long-term purchase agreements. As previously announced, 30 MW of the energy and environmental properties produced by Elara will be sold to EDF Energy Services under a long-term power purchase agreement. The remaining 100 MW of energy produced by Elara is subject to a long term hedging agreement with Morgan Stanley Capital Group Inc. Eventually, 100 MW of Renewable Energy Credits (RECs) will be sold to Fathom Energy LLC as part of a long term REC purchase agreement.
"With Elara, 7X has now successfully implemented over 2,100 MW of direct current in solar projects in operation or under construction," says Clay Butler, President and CEO of 7X Energy. "We are very proud to do our small part as a team to help future generations achieve a more sustainable energy future."
Swinerton Renewable is the engineering, procurement and construction (EPC) contractor and SOLV, a Swinerton subsidiary, will manage the operations and maintenance for the project. The project uses Nextracker components, Freesun HEM inverters from Power Electronics and over 435,000 Jinko modules. Over the life of the facility, the project is expected to deliver more than $ 22 million in taxes to Frio County, Pearsall ISD and Frisco Hospital District.
Further information on the Elara energy project can be found here.
Photo: Ton Butler
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