Solar Trust of America, LLC has picked Citigroup Global Markets Inc. and Deutsche Bank Securities, Inc. as advisors to assist in securing more than $6 billion in financing for construction of multiple solar thermal power plants being developed by Solar Trust of America across the southwestern US.
With Berkeley-based Solar Millennium, LLC, and global business partners Solar Millennium AG and MAN Ferrostaal AG, Solar Trust of America is pursuing the construction and development of multiple solar thermal power plants across the region. The company currently has solar thermal energy power plants in advanced stages of development, among them Ridgecrest, Palen, and Blythe in California and in Nevada`s Amargosa Valley.
The banks will advise Solar Trust of America, which has already applied for certification with the Department of Energy (DOE) in its bid to secure a competitive award of the DOE loan guarantees and develop models for debt and equity project financing for its proposed solar thermal power plants in California and Nevada, expected to begin construction in 2010.
The Solar Trust of America Group has power purchase agreements (PPAs) in place with Southern California Edison (SCE) for development and construction of two 242-MW power plants, with an option to include a third 242-MW plant, for a total of up to 726-MW of capacity. The PPA agreements provide for the purchase of the output by SCE over a 20-year period. These solar thermal power plants are expected to begin operation between 2013 and 2014. Solar Trust of America also has in place a Memorandum of Understanding with Nevada Energy for development and construction of at least one 242-MW solar thermal power plant.