Capital Dynamics CEI, the Clean Energy Infrastructure (CEI) business line of Capital Dynamics, and Hoosier Energy, a generation and transmission cooperative, today announced the signing of a long-term Power Purchase Agreement (PPA).

Under the terms of the PPA, Hoosier Energy will purchase 150-megawatts (MW) of the power generated by the Ratts 2 Solar Project, a CEI-owned greenfield solar project that is currently being developed in Knox County, Indiana. Arevon Energy Management and Tenaska are co-developing this project and aided in procuring and negotiating the terms of the PPA. Construction is expected to begin in 2022 with commercial operation anticipated in 2023.

The Knox County Council unanimously approved the economic development agreement for the Ratts 2 Solar Project In October 2020. The county also finalized a solar ordinance to guide certain technical aspects of the project. Under the agreement, the project will pay $2.5 million in economic development payments to Knox County over a six-year period.

Ratts 2 is expected to contribute an estimated $16 million in tax revenue over the project life. According to an economic study conducted by Gnarly Tree Sustainability Institute, the Ratts 2 Solar Project is estimated to contribute $20.9 million to the Knox County Gross Domestic Product (GDP) during construction and $941,000 annually once the solar project is operational. It will bring 188 full-time construction jobs, full-time operations and maintenance employment, and annual expenditures on goods in excess of $363,000 over the project’s expected 35-year lifespan. The project will also pay an estimated $1 million lease payments annually to local landowners.