Hoosier Energy has signed a power purchase agreement (PPA) with Capital Dynamics CEI to procure power generated at the 150MW solar project in Indiana, US.
To be located in Knox County, the Ratts 2 solar project is being co-developed by Arevon Energy Management and Tenaska.
The project is anticipated to enter into commercial operations in 2023, after the expected start of construction in 2022.
Covering approximately 1,200 acres of land, the solar project will be constructed with an investment of $128m.
Once operational, the Ratts 2 facility is expected to generate solar energy to power the average electricity consumption of approximately 28,000 Indiana homes each year.
The project is estimated to have an useful life of 35 years.
Hoosier Energy president and CEO Donna Walker said: “Hoosier Energy’s PPA with Capital Dynamics is an important step toward achieving our long-range plan of adding diverse projects to our energy portfolio that focus on lowering costs for our members and reducing our carbon footprint.”
In October 2020, the economic development agreement for the Ratts 2 project was approved by the Knox County Council.
The project is expected to pay $2.5m in economic development payments to Knox County over a six-year period.
The Ratts 2 solar project is expected to contribute an estimated $16m in tax revenue over the project life.
Capital Dynamics CEO Martin Hahn said: “We are extremely pleased that Knox County has been so supportive of the Ratts 2 Solar Project and are grateful for their partnership.
“This project will bring jobs, tax revenue, landowner lease payments and a wide range of additional economic benefits to Knox County.
“We are looking forward to working with the county and the teams at Arevon Energy Management and Tenaska to bring affordable, clean energy to this community.”