RWE takes 100MW shine to Texas
Diversifying the revenue base. Does TPL get a royalty on the power produced?
RWE has started commercial operations at its 100MW West of the Pecos solar farm in Texas.
The project is located on 283 hectares of land in Reeves County leased from Texas Pacific Land Trust and Texas General Land Office.
It comprises nearly 350,000 solar modules and is RWE’s first photovoltaic project in Texas.
West of the Pecos has a long-term power purchase agreement with SK E&S LNG for 50MW of the output.
RWE begins commercial operations of 100MW solar project in US
Located 75miles (120.7km) southwest of Midland-Odessa, the solar plant is spread across on more than 700 acres of land leased from Texas Pacific Land Trust and Texas General Land Office within the county and is powered by nearly 350,000 solar modules.
RWE Renewables CEO Anja-Isabel Dotzenrath said: “The completion of our largest solar project in the U.S. is another good example of RWE’s continued success in the U.S. market and our effort to diversify our portfolio across technologies. With a development pipeline of more than 10 GW our strategy for renewables in the U.S. is geared for growth.
“A very big thank you to all involved employees and partners, who made an excellent job in the smooth execution of this project. West of the Pecos underscores our commitment to being the partner of choice for the transition to a lower-carbon future.”
3 thoughts on “700 Acres of Solar”
Great find TPLBlogger!! Curious to know what would be the lease rate for 700 acres of land?
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Yes, nice find on this story, TPLblogger. From the link it appears the new solar farm just went into production. Assuming it takes 3-6 months to implement, so TPL is probably already receiving lease payments. Perhaps the next 10 Q may provide additional information.
From the linked story, I saw this interesting update below. Perhaps TPL is the unnamed investor? Time will tell.
“RWE has also successfully closed tax equity financing for the project with an unnamed investor in exchange for a partial interest in West of the Pecos.”
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I like this for multiple reasons, but the biggest is because it might help change the landscape of individuals that are buying shares. Seems to me like the younger folks like to buy all of the green stuff they can get, and this is now a play at that. I’m wondering if a company that recycles water, and leases land for solar/wind farms, power grids and renewables, could open a new demographic…. I could see a c Corp with those features appeasing the kids…. maybe even mine for Bitcoin at another piece of land the company bought in Alaska. I don’t know what else the kids like these days, but I’m sure the company could figure that part out. Looking forward to the annual report and the January meeting update.
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