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Panda Power Funds is expanding its planned natural gas-fired Temple plant in Texas as part of a trend of generation developers jumping into the Lone Star State's market to take advantage of the need for new resources to support growing power demand and intermittent wind energy.
Panda Power said in an April 4 news release that it completed financing for the 758-MW Temple II unit expansion to its combined-cycle project under construction in the city of Temple in Bell County in central Texas, midway between San Antonio and the Dallas-Fort Worth area. Financing for the 758-MW Temple I unit was completed in July 2012, with construction begun in September 2012.
Under a financing deal similar to its Temple I project, Panda Power is supplying equity for the Temple II project along with several other institutional co-investors. Goldman Sachs and Credit Suisse arranged the senior debt financing for the plant, and a turnkey consortium of Bechtel and Siemens Energy will build the Temple II facility.
Bill Pentak, Panda Power vice president of investor relations and public affairs, said April 4 that the Temple I and II units are scheduled to enter commercial operation by summer 2014 and summer 2015, respectively. Both units are merchant, with Panda Power expecting to sign long-term power purchase agreements, he said. While not disclosing costs for either unit, he added that Temple I will have its gas supplied by Energy Transfer Partners LP and Temple II will be supplied by Atmos Energy Corp., with gas coming from the Katy Hub.
As intermediate baseload supply with ramping capability, the Temple project will employ quick-start turbines that can...