Revolve Renewable Power Co., Ltd. has completed an interconnection milestone for the 250 MW Parker Solar and Energy Storage Project in La Paz County, Arizona.This project was sold in January ENGIE IR Holdings LLCa subsidiary of ENGIE SA
The sale also includes the sale of the 1,000-megawatt Bowes solar power and storage project located approximately 44 miles east of Quartzsite, Arizona.
The Parker Project is located on approximately 1,530 acres of land fully managed by the US Bureau of Land Management in La Paz County. The project is located near existing transmission infrastructure and is accessed through the existing state highway network. Revolve will begin greenfield development of the Parker Project in mid-2021.
The Bowes Project is located on approximately 6,155 acres of land fully managed by BLM in La Paz County. The entire project site is located in the solar variability region identified in BLM’s solar PEIS and determination record. Revolve will begin greenfield development of his Bouse project in early 2021.
Revolve received an upfront payment of $2 million (including reimbursement of development costs) upon closing of the transaction. The remaining payments are tied to Parker and Bowes projects completing their next development milestone.
- Completion of further interconnection studies.
- ENGIE will issue a “Continue Notice” of the construction work to the applicable EPC contractor.
- Commissioning date, the date the project is synchronized to the grid and can supply all installed capacity to the grid.
The next milestone payments related to the Parker Project totaling $850,000 are due and will be paid within the next 30 days. As a result, Revolve expects to record a total of $1.09 million in revenue from this transaction in the first quarter of 2024, including the above milestone payments and the previously deferred first upfront payment of $240,000.
The original transaction included a “put option” agreement under which ENGIE will sell the Parker & Bowes projects back to Revolve for a limited time after receiving the results of the upcoming interconnection studies scheduled for each project. was supposed to be possible. However, that option expired with his ENGIE retaining ownership.
“The milestone payments provide additional funding to continue funding our operations and our expanding project development pipeline,” said Steve Dalton, CEO of Revolve. “The expiry of the put option removes the risk that the Parker Project will be sold back to us and the uncertainty that this creates for investors.”
Dalton added that Revolve will be able to continue to “help the developing ENGIE team reach its next milestone for the Parker project and the release of the next interconnect study for the Bowes project in the first half of next year,” Dalton added. .
Founded in 2012, Revolve develops utility-scale wind, solar and battery projects with a portfolio of 2,838 MW in the United States and Mexico. The company has his second division, Revolve Renewable Business Solutions, which has installed and operated less than 20 MW of “behind the meter” distributed generation (DG) assets, with a current portfolio of operations of 6 MW. , and another 3 MW under construction.
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