Panda Energy, is not giving up. A little more than a year after walking away from its bankrupt ethanol business, the Dallas energy developer’s solar unit, Panda Solar Ventures, has teamed-up with ConEdison Development, a unit of the New York City electric utility, to develop up to 20 megawatts of solar PV projects on the East Coast.
This is the first time the two companies’ work together.
Panda is betting solar power could be its entry point into the green energy business. And with the price of PV panels trading at record lows, Panda’s strategy makes sense. Panda and ConEd, which are equal partners in the two projects, did not say how much they would cost to develop them. According to industry estimates it costs about $6.1 million to put a single megawatt online.
ConEd bring to the deal financial security as its large balance sheet will make it easier to secure project financing. “ConEd is a good partner to have when it comes time to get financing, ” a Panda official tells us.
The Panda official declined to says where exactly in the Northeast the two farms would be deployed. While a lot of solar power projects are being developed in the sun-rich Western U.S. the northeast, with its large load centers and easy access to the grid, is also prime real estate.
According to a release issued this morning, Panda will operate the plant as well negotiate the long-term power purchase agreements. ConEd will handle project finance. So far none of the projects are backed by PPAs.
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