- Lightsource BP has announced a pgPPA with Capital Solutions unit of AGCS in the US for a 153 MW PV project
- It will calculate energy generation on an hourly basis and won’t be based on metered generation
- The Briar Creek Solar Farm is expected to come online by the end of 2021
British solar power project developer Lightsource BP has signed what it terms a proxy generation power purchase agreement (pgPPA) for a 153 MW solar power plant it is developing in Navarro County of Texas, US.
It defines pgPPA as an innovative renewable energy contract structure ‘intended to manage weather related risk’. Similar to a virtual PPA, the pgPPA settles energy on a proxy generation index instead of metered generation and calculated independently on an hourly basis assuming it had been operated as specified by the developer or owner. The contract was designed in partnership with Nephila Climate.
REsurety, Inc. will serve as the calculation agent for the life of the project, it added.
Lightsource BP has entered this pgPPA with Capital Solutions unit of global business insurance company Allianz Global Corporate & Specialty (AGCS) for the 153 MW Briar Creek Solar Farm that’s expected to enter service at the end of 2021. AGCS’s Managing Director Vijay Suchdev called the pgPPA a novel renewable energy hedge structure and risk management tool.
“Innovative power contract structures such as virtual and proxy generation PPA’s are valuable tools we can leverage to meet the needs of our corporate partners, manage risk, and continue to finance and build new solar projects for our low carbon future,” said Lightsource BP Americas CEO Kevin Smith who called the deal a great example of the evolution of renewable energy products in the US.
In Texas, Lightsource BP in September 2020 signed a virtual PPA with defence and aerospace technology company L3Harris Technologies for the 100 MW Elm Branch Solar Project (see Lightsource BP Secures VPPA For 100 MW PV Capacity).