D. E. Shaw Renewable Investments, L.L.C. (“DESRI”) announced that ground has been broken at the site of the Red Horse 2 wind and solar project in Cochise County, Arizona. Torch Renewable Energy (“TRE”) began developing the 71-megawatt (AC) project in 2011 and secured its power purchase agreement (“PPA”) with Tucson Electric Power (“TEP”) in February 2013.
DESRI provided development funding to the project in December 2013 and jointly completed its development with TRE over the subsequent eight months. DESRI subsequently acquired the project in August 2014 with senior debt from Santander Bank, N.A. and Banco de Sabadell, S.A., alongside a commitment for tax equity financing from U.S. Bank.
Swinerton Renewable Energy is designing and constructing the project, which will combine Vestas V110 wind turbines with Jinko Solar PV panels and Advanced Energy inverters. Swinerton will also provide ongoing operations and maintenance services to the facility once built. The project has a 20-year PPA with TEP and is expected to provide clean power to more than 13,500 homes in the TEP service territory, according to metrics provided by the U.S. Environmental Protection Agency.
“Red Horse 2 is one of the first combined wind and solar projects in the U.S., and we are proud to add it to the DESRI portfolio. We appreciate all of the hard work of our many partners in helping us to reach this important milestone,” said Bryan Martin, a managing director and head of U.S. Private Equity for the D. E. Shaw group. “We are happy to report that we’ve broken ground on the construction site and we are looking forward to completing and operating this project, so we can begin providing solar and wind energy to Arizona’s residents and businesses.”
Jorge Camina, Managing Director at Santander, said, “Santander is pleased to offer its extensive capabilities in the U.S. renewable energy market to DESRI in support of the Red Horse 2 project. We look forward to a fruitful partnership on this and other projects in future years.”
Enrique Castillo, Structured Finance Director of Banco Sabadell for the Americas, said, “We are excited about being part of this outstanding group of professionals that made the Red Horse 2 project possible and thrilled to help our clients succeed. This is what it’s all about for us at Banco Sabadell.”
David G. Hutchens, President and CEO of TEP, said, “We are excited to see Red Horse 2 start construction. TEP has enjoyed working with the development teams at Torch and DESRI to bring this world-class project to fruition. We believe that it will benefit our customers and our community for many years to come.”
Jon Kilberg, CEO of Torch, said, “We’ve been delighted to work again with the forward thinking leadership team at Tucson Electric Power, including Dave Hutchens and Carmine Tilghman, Senior Director of Wholesale, Fuels and Renewable Resources. Their vision has allowed Torch and DESRI to develop what will be the largest hybrid project in Arizona at competitive power prices, which we anticipate will be good for the consumer and the environment. DESRI has been a great partner in this process, helping us with capital and expertise to get Red Horse 2 across the finish line.”
About D. E. Shaw Renewable Investments, L.L.C.
D. E. Shaw Renewable Investments (DESRI) and its affiliates acquire long-term contracted renewable energy assets in North America. DESRI is a member of the D. E. Shaw group, a global investment and technology development firm with more than 1,000 employees, approximately $34 billion in investment capital as of October 1, 2014, and offices in North America, Europe, and Asia.
Please visit www.deshaw.com for more information about the D. E. Shaw group.
About Torch Renewable Energy
Torch Renewable Energy is a leading developer of renewable energy projects focused primarily in the Southwestern United States. Torch currently has more than 12 projects in various stages of development in 7 U.S. states, representing greater than 2,000MW of potential generation capacity.
About Tucson Electric Power
Tucson Electric Power provides safe, reliable electric service to approximately 414,000 customers in southern Arizona. To learn more, visit tep.com. TEP and its parent company, UNS Energy, are subsidiaries of Fortis, which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. For more information, visit fortisinc.com.
About Santander Bank, N.A.
Santander Bank, N.A. is one of the largest retail banks in the United States by deposits. Its main corporate offices are in Boston and it operates principally in Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island. Santander’s 9,703 employees serve its 1.8 million customers through the Bank’s 703 branches, 2,092 ATMs, call centers, website and mobile app. Supervised by the Office of the Comptroller of the Currency and a member of the Federal Deposit Insurance Corporation, Santander in the United States is a wholly-owned, financially autonomous subsidiary of Banco Santander (NYSE: SAN), a global commercial and retail bank. For more information about Santander, visit www.santanderbank.com or call 877-768-2265.
About Banco Sabadell
Banco Sabadell (Sabadell), established in 1881, is the fourth largest banking group in Spain (by assets). Sabadell established its presence in the US in 1993 with a branch in Miami, where today it has a full international branch license and provides corporate and private banking services focused on companies and individuals in the United States and Latin America. Sabadell also has a local bank in Miami, Sabadell United Bank, a locally-managed, nationally-chartered banking institution with 27 locations throughout Florida. Sabadell United Bank is recognized as the trusted financial advisor for professionals and businesses as well as high-net-worth individuals. Sabadell United Bank consistently ranks as one of the most well capitalized banks in the state and is rated 5 stars by Bauer Financial for its financial stability.
With over 3 GW of power generation and 630 MW of solar power expertise, Swinerton Renewable Energy offers turnkey solar power solutions for utility-scale and distributed-generation projects, including EPC and O&M services, warranty wraps, performance guarantees, and its industry-leading monitoring and SCADA platform, SOLV™. Recognized nationally since 1888, Swinerton is the preferred builder and trusted partner in every market it serves—proudly leading with integrity, passion, and excellence. For more information on Swinerton, visit the company’s blog, Facebook, Flickr, and LinkedIn or follow Swinerton Renewable Energy on Twitter.