Commercial, Solar, Sourcing Renewables - January 7, 2021
Allianz Global Corporate & Specialty signs pgPPA for 153 MW of solar power
Allianz Global Corporate & Specialty (AGCS), a global corporate insurance carrier, announced on Jan. 7 that it signed an agreement to source 153 MW of solar power from developer Lightsource bp’s Briar Creek solar farm in Navarro County, Texas.
The agreement is a proxy generation power purchase agreement (pgPPA), an innovative renewable energy contract structure intended to manage weather-related risk. A pgPPA is similar to a virtual PPA, except it settles energy on a proxy generation index rather than the metered generation. Proxy generation is an hourly index that specifies the volume of energy that a project would have produced if it had been operated as specified by the developer or owner.
“AGCS is excited to collaborate with Lightsource bp on this novel renewable energy hedge structure and risk management tool,” Vijay Such, managing director at AGCS, said in a statement. “We are committed to working with our partners to achieve their sustainability goals and to support the long-term global growth of renewable energy.”
The solar project will also deliver local economic benefits beyond clean and economical electricity for the Dallas Fort Worth area including:
- Generating an estimated $19.7 million in property tax revenue to Navarro County over its life, benefitting local schools and other community public services.
- Creating about 250 jobs during construction, with local labor and service requirements included in construction contracts.
- Bringing $152 million of private capital investment in new, local energy infrastructure for Texas.
The Briar Creek solar farm, located about 40 miles south of Dallas, is expected to start commercial operation at the end of 2021.
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