Revolve Renewable Power Corp. has completed an interconnection milestone for 250 MW Parker Solar and Storage Project in La Paz County, Arizona. The project was sold in January to ENGIE IR Holdings LLC, a subsidiary of ENGIE S.A.
The sale also included the sale of the 1,000 MW Bouse Solar & Storage Project, located about 27 miles east of Quartzsite, Arizona.
The Parker project is located on approximately 1,530 acres of land wholly managed by the U.S. Bureau of Land Management in La Paz County. The project is near existing transmission infrastructure and accessed through existing state road network. Revolve commenced the greenfield development of the Parker Project in mid-2021.
The Bouse project is located on approximately 6,155 acres of land wholly managed by the BLM in La Paz County. The entire project site is located in a solar variance area as identified in BLM’s Solar PEIS and Record of Decision. Revolve commenced the greenfield development of the Bouse Project in early 2021.
Revolve received an upfront payment of $2 million (inclusive of the reimbursement of development costs) on completion of the transaction. The remaining payments are linked to each of the Parker and Bouse projects completing the following development milestones:
- Completion of further interconnection studies.
- Issuance by ENGIE of a “notice to proceed” construction works to the applicable EPC contractor.
- On the commissioning date, when the project has been synchronized to the grid and is capable of delivering all of its installed capacity to the grid.
The next milestone payment related to the Parker project totaling $850,000 has now become due and is expected to be paid within the next 30 days. As a result, Revolve expects to record 2024 Q1 revenue from the transaction totaling $1,090,000, consisting of the milestone payment above and $240,000 of initial upfront payment that was previously deferred.
A “put option” agreement was part of the original transaction, which would allow ENGIE to sell the Parker and Bouse project back to Revolve for a limited period following receipt of the results of the next interconnection studies due for each project. However, that option has expired with ENGIE retaining ownership.
“The milestone payment provides us with further capital to continue funding the business and our expanding project development pipeline,” said Steve Dalton, CEO of Revolve. “While the expiration of the put option removes the risk of the Parker project being sold back to us and the uncertainty that this generated for investors.”
Dalton added that Revolve can now continue “supporting the team at ENGIE in developing the Parker Project towards reaching its next milestone as well as the release of the next interconnection study for the Bouse Project in the first half of next year.”
Formed in 2012, Revolve develops utility-scale wind, solar and battery storage projects in the United States and Mexico, with a portfolio of 2,838 MW. The company has a second division, Revolve Renewable Business Solutions, which installs and operates sub-20 MW “behind the meter” distributed generation (DG) assets, with current operating portfolio of 6 MW and an additional 3 MW under construction.
Tags: ENGIE, Revolve Renewable Power Corp., solar+storage, utility-scale
