Duke Energy (NYSE: DUK), Integrys Energy Services (NYSE: TEG) and Smart Energy Capital this week
announced a partnership to build and finance distributed
solar projects throughout the United States.
Through the partnership, Duke Energy Generation Services (DEGS) and
Integrys Energy Services (Integrys) will focus on jointly owning
rooftop and smaller ground-mounted photovoltaic (PV) solar projects
that deliver electricity to investment-grade commercial, government and
utility customers under long-term power purchase agreements. Smart
Energy Capital will develop the projects and arrange financing.
DEGS and Integrys will equally supply the necessary equity capital
for construction and ownership of the distributed solar projects. Over
the next two years, the companies intend to invest up to $180 million
in total project capital. Individual project size is expected to be 500
kilowatts and up, depending on the needs of the customer. DEGS and
Integrys will be responsible for operating and maintaining the projects.
Smart Energy Capital will work with its strategic origination
partners, including CB Richard Ellis (under the name CBRE Solar) and
Tremco Roofing, to help customers achieve their sustainability and
energy objectives on optimal terms. The financing structure of the
partnership enables DEGS and Integrys to monetize all available federal
tax benefits associated with the distributed solar projects.
“What makes this partnership unique in the marketplace is its focus
on distributed solar solutions that produce renewable electricity close
to where it is used, rather than at centralized power plants,” said
Greg Wolf, DEGS senior vice president and head of the unit’s commercial
solar business.
DEGS, part of Duke Energy’s Commercial
Businesses, and Integrys Energy Services, a subsidiary of Integrys
Energy Group, said they believe the majority of PV solar growth over
the next several years will involve commercial-scale ground-mounted and
rooftop applications.
DEGS and Integrys will continue to
independently develop commercial solar projects.
“We have invested more than $65 million in 20 different distributed
generation solar projects across the U.S. with a combined capacity of
more than 10 megawatts,” said Joel Jansen, managing director and head
of energy assets at Integrys Energy Services. “Partnering with DEGS and
Smart Energy Capital enables us to xpand our presence in this market
in an efficient, strategic manner.”
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