Tenaska has announced that Prudential Capital Group (Prudential) has agreed to acquire a minority interest in the Tenaska Imperial Solar Energy Center South project, a 130-megawatt (MW) solar photovoltaic electric generating station near El Centro, Calif., currently owned by a Tenaska affiliate.

Prudential will become an indirect minority owner of Tenaska Imperial South. Tenaska affiliates will retain majority ownership and continue to manage the project.

"This joint venture provides our clients with the opportunity to share in the success of an innovative solar project with Tenaska, a partner that has 26 years of experience in managing these kinds of projects," said Ric Abel, managing director, Prudential.

"We are delighted to partner with Tenaska's team."

Tenaska Imperial South is one of the largest commercially financed solar projects in the U.S. to date and was the first utility-scale solar project to begin construction in California's Imperial Valley.

The ground-mounted photovoltaic solar project will produce enough electricity to power approximately 44,000 California homes when operating at peak times. The power generated from the facility will serve San Diego Gas and Electric (SDG&E) customers under a 25-year power purchase agreement.

"Tenaska has been fortunate to work with partners that align with our business philosophy and share in the success of each of our power projects," said Tenaska Vice Chairman and CEO Jerry Crouse.

"Prudential has been a lender to Tenaska projects for many years. We are looking forward to continuing that relationship and now expanding it on the equity investment side."

Royal Bank of Canada is advising Tenaska in the transaction. The sale is subject to regulatory approvals expected to be final in December. Terms are confidential.

California's renewable energy mandates requiring utilities to secure 33 percent of their power from renewable energy resources and reduce greenhouse gas emissions to 1990 levels by 2020 created a strong market for large-scale projects like Tenaska Imperial South.

Tenaska Solar Ventures (TSV), the Tenaska affiliate that developed the project, has also completed permitting for the Tenaska Imperial Solar Energy Center West near El Centro. Tenaska Imperial West will produce up to 150 MW of electricity for SDG&E under a 25-year power purchase agreement. TSV continues to develop two additional projects in the Imperial Valley.