(Taygete I Energy Project. Credit: 7X Energy)Nestlé has announced it will be the sole tax equity investor for the 250 MWac Taygete I Energy Project located in Pecos County, Texas. The solar project is owned and operated by 7X Energy, Inc., a utility-scale solar developer.
Taygete I construction activities are complete and the project is in the final energization phase with full commercial operation expected in early 2021. A portion of the energy generated from the Taygete I solar project will be sold through a long-term hedge agreement to J. Aron & Company LLC., a subsidiary of Goldman Sachs. The other power purchaser is an S&P A- Rated entity. CIT was the coordinating lead arranger and the other lenders included Deutsche Bank, National Bank of Canada, CIBC, Rabobank, and Amalgamated Bank. Marathon Capital acted as the exclusive financial advisor to Nestlé on the transaction.
Nestlé's investment represents the company’s largest direct investment (by capacity) in a renewable energy project to date. In addition to its tax equity investment, Nestlé will purchase 100% of the renewable electricity attributes generated by the project’s energy production, estimated to be 750,000 megawatt hours per year for 15 years. This renewable energy will help the company reduce carbon emissions.
The project, covering approximately 2,000 acres, used NextTracker components, Power Electronic Freesun HEM inverters, and over 856,000 Jinko modules. Swinerton Renewable Energy constructed the Taygete I solar project under an engineering, procurement, and construction (EPC) contract with 7X Energy.
