7X Energy Inc., a utility-scale solar developer, owner and asset manager, has sold its 130 MW AC Elara Energy Project, located in Frio County, Texas, on over 1,700 acres, to KOMIPO America Inc., the U.S. subsidiary of Korea Midland Power Co. Ltd., one of the major power companies in Korea.
Morgan Stanley Renewables Inc. is anticipated to be the sole tax equity investor for the Elara project. CohnReznick Capital served as the financial advisor to 7X, providing support across capital formation and structuring. Elara is currently under construction and is expected to reach full commercial operation in Q4.
Elara’s energy and environmental attributes are being sold under three long term offtake agreements. As previously announced, 30 MW of the energy and environmental attributes 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 hedge agreement with Morgan Stanley Capital Group Inc. Lastly, 100 MW of renewable energy credits (RECs) will be sold to Fathom Energy LLC under a long-term REC purchase agreement.
“With Elara, 7X has now successfully originated over 2,100 MW DC of solar projects either in operation or under construction,” says Clay Butler, president and CEO of 7X Energy. “We are extremely proud, as a team, of playing our small part in assisting future generations in achieving a more sustainable energy future.”
Swinerton Renewable is the engineering, procurement and construction (EPC) contractor and SOLV, a subsidiary of Swinerton, will manage the operations and maintenance for the project. The project is using Nextracker components, Power Electronics Freesun HEM inverters and over 435,000 Jinko modules. Over the life of the facility, the project is expected to provide more than $22 million in total taxes to Frio County, Pearsall ISD and Frisco Hospital District.
For additional information on the Elara Energy Project, click here.
Photo: Clay Butler