Solar Alliance signs design agreement for solar project in Illinois
Under the Agreement, Solar Alliance and Green Data will determine the feasibility of a larger second phase of the Project while simultaneously advancing detailed design work on the initial 56 MW phase.
TORONTO and KNOXVILLE — Solar Alliance Energy Inc. announces that it has signed a Solar Design Agreement with Green Data Center Real Estate Inc. to commence design and detailed feasibility analysis on an initial 56-megawatt, US $60 million ground and roof mount solar project at a hyperscale data center in Illinois. The Agreement details a phased approach to Project development in order to assess the potential of increasing the project size. It is anticipated the data center will have sufficient electricity demand to support a solar project up to 150 MW. Under the Agreement, Solar Alliance and Green Data will determine the feasibility of a larger second phase of the Project while simultaneously advancing detailed design work on the initial 56 MW phase. Final costs for both phases will be determined and negotiated as part of a final construction agreement and Notice to Proceed.
Under the terms of the Agreement, Green Data has granted Solar Alliance the option to provide equity to acquire up to 10% of the entire project. In consideration for the ownership option on the entire project, Solar Alliance will take on additional project development responsibilities including certain interconnection assessment activities, project finance participation and community engagement.
Under the terms of the Design Agreement, Solar Alliance and Green Data will also:
- Determine potential to expand system size based on site constraints.
- Determine potential phasing of solar project construction based on data center power demand and data center construction schedule; and
- Agree a financial model that illustrates project economics and provides the basis for a decision on Solar Alliance equity participation in the project.
“This project represents a natural expansion for Solar Alliance into large project development and ownership,” said Solar Alliance CEO Myke Clark. “As we continue to design and build solar systems for residential builders and commercial clients, we are also excited to begin project development work on larger utility-scale systems. These projects take investment and time to pursue, but the return on investment through ownership potential is significant.”
The design work for the solar system is being completed in tandem with the final design work for the data center. The final project size and capital cost will be determined as part of the design process and a final construction agreement will be negotiated in advance of Notice to Proceed. Advancement of the project is dependent on the design and engineering targets and the final approval of Green Data.