CPV and DGC close financing on 720 MW Valley Energy Center project

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CPV and DGC close financing on 720 MW Valley Energy Center project

Competitive Power Ventures (CPV) and partner Diamond Generating Corporation (DGC) have announced financial close with MUFG Union Bank and Crédit Agricole for the 720 MW CPV Valley Energy Center project in Orange County, New York (USA).

This if the first such transaction by CPV under new owner, Global Infrastructure Partners (GIP).

Located 105 km northwest of New York City, the CPV Valley Energy Center is a 720 MW combined-cycle natural gas-powered electric power generating facility with ultra-low sulfur diesel backup. The plant will be powered by Siemens F-class turbine technology

The project will be constructed by a joint venture consisting of Skanska USA Civil Northeast, the Burns & McDonnell Engineering Company, and ECCO III Enterprises.

Construction will take approximately 32 months with commercial operation expected to begin in early 2018.

The site will sell its capacity, energy and ancillary services into the lower Hudson Valley and provide enough power to supply roughly 720,000 New York homes, feeding into the New York Power Authority's 345 kV Marcy South transmission line in Middletown, NY.

Once operational, the plant is expected to mitigate the ratepayer impacts of the recently instituted new capacity zone in the lower Hudson Valley by reducing electricity prices by roughly US$273 million annually.

To conserve water, the CPV Valley Energy Center's design incorporates advanced air cooling and recycled water from a water waste treatment plant nearby. This reduces water use by approximately 85% compared to traditional "wet" cooled facilities.

Doug Egan, CEO of CPV, has commented:

"We are delighted to be bringing this project into construction at a time when the region is in need of new, clean electric generating capacity. The CPV Valley Energy Center embodies our corporate mission to improve the economic, environmental and energy sustainability of the communities in which we operate."

CPV currently has over 8 GW of conventional generation projects in various stages of development across North America. The Diamond Generating Corporation, a subsidiary of the Mitsubishi Corporation, owns 11 operating power generating facilities in the U.S. totaling 5.8 GW.

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