D. E. Shaw Renewable Investments has closed with lenders and launched construction on its San Juan 1 solar energy project, the company announced on July 11.
“DESRI is thrilled to announce the start of construction at San Juan 1," Thomas de Swardt, Chief Commercial Officer of DESRI, said in a statement.
"As a capacity replacement for a retired coal generator, the Project is an important part of New Mexico’s transition to state of the art, cost-effective renewable energy, firmed by battery storage.”
The project involves the establishment of a 200-megawatt (MWac) solar facility along with a 100 MWac battery storage system, situated adjacent to the former San Juan Generating Station in San Juan County, according to a news release.
This project serves as a critical capacity replacement for the retired San Juan Generating Station and will use existing infrastructure from the retired plant for grid interconnection.
San Juan 1 represents the initial phase of a larger project that, upon full development and construction, is expected to contribute 400 MWac of clean power to the grid, the company said.
“We deeply appreciate the partnership of PNM, San Juan County, the San Juan Citizen’s Alliance, the Project’s lenders, and numerous other stakeholders and supporters in the community in achieving this milestone,” de Swardt said.
San Juan 1 marks the third project in New Mexico and the first in San Juan County for DESRI, the news release said. The company has a 20-year power purchase agreement with the Public Service Company of New Mexico (PNM).
The financing for the construction of the project was secured through a consortium of lenders, with Société Générale (SG) leading the arrangement, the company said.
Other participating lenders include Zions Capital Markets, Huntington National Bank, Commerzbank AG, and SuMi Trust. SOLV Energy has been selected as the engineering, procurement, and construction contractor responsible for the solar and battery storage components, while EPC Services Company will handle the construction of the generation tie-line and project substation.
Once the facility is operational, SOLV Energy will continue to provide ongoing operations and maintenance services according to a press release by D. E. Shaw Renewable Investments.
“We are excited to partner with DESRI on the San Juan 1 Project," said Tom Fallgren, PNM Principal Generation advisor.
"The San Juan 1 Project serves as an important step in our path to carbon-free electricity while providing new energy infrastructure in New Mexico’s Four Corners region.”