Dominion Power and SunEdison said on Tuesday that they have formed a partnership in which Dominion will sell 33 percent of its ownership in 425 megawatts of solar generating capacity to SunEdison for approximately $300 million.
The deal is subject to approval by the Federal Energy Regulatory Commission. Should it be approved, SunEdison would have the option to purchase the remaining 67 percent that Dominion holds over this set of solar projects in Georgia, Connecticut, Indiana, California, Tennessee and Utah.
“We began acquiring and developing long-term contracted solar projects in 2013 to build the knowledge and expertise in constructing, owning and operating utility-scale solar power before bringing that technology to Virginia,” Thomas Farrell II, chairman, president and CEO of Dominion, said. “Meanwhile, during the past decade, Dominion has worked to reduce risk and divest noncore assets and businesses. Our focus is shifting from constructing contracted solar to constructing utility solar in Virginia, where we expect to develop 400 megawatts of generating capacity by 2020.”
The 425 megawatts of solar energy is spread among 24 projects — 15 currently in service and the remaining nine set to enter service or be completed by the end of the year.
Dominion said it also has agreed to enter a joint venture to construct a 210-megawatt solar project in Utah.
