Overview
Red Hills Renewable Energy Park is an operational photovoltaic power plant situated in Iron County, Utah, United States. The facility is located approximately 3 miles northwest of the town of Parowan. It functions as a significant solar energy infrastructure asset in the region, utilizing solar photovoltaic technology to generate electricity for the local grid. The plant has an installed capacity of 104 MWp (peak megawatts) and delivers 80 MWAC (alternating current megawatts) to the transmission system. These capacity figures reflect the difference between the direct current output of the solar panels and the alternating current output after inversion and minor line losses.
The facility was commissioned in December 2015. Upon its connection to the grid, Red Hills Renewable Energy Park held the distinction of being the largest solar facility in the state of Utah. This milestone marked a notable expansion of solar infrastructure in the state during the mid-2010s energy transition period. The plant is operated by Swinerton Renewable Energy, which manages the day-to-day operations and maintenance of the photovoltaic arrays and associated electrical infrastructure.
The electricity generated by the park is sold under a 20-year power purchase agreement. The primary off-taker is Rocky Mountain Power, a major utility provider that serves customers across Utah, Idaho, and Wyoming. This long-term contract provides revenue stability for the project and secures a consistent supply of renewable energy for the utility's service territory. The project represents a key component of the regional energy mix, contributing to the diversification of power sources in the Intermountain West. The facility continues to operate as a major contributor to Utah's solar capacity portfolio, leveraging the high solar irradiance typical of the Iron County region.
Why it matters
Red Hills Renewable Energy Park holds a distinct position in the chronology of Utah’s energy infrastructure, primarily because it was the largest solar facility in the state when it came online in December 2015. This distinction marks a pivotal moment for Iron County and the broader Utah power grid, signaling a shift toward larger-scale photovoltaic integration. The plant’s capacity of 80 MWAC (104 MWp) represented a significant addition to the state’s renewable energy mix at the time of its commissioning. Its location, approximately 3 miles northwest of the town of Parowan, places it within a region increasingly recognized for solar potential, contributing to the diversification of energy sources beyond traditional hydroelectric and coal assets that have historically dominated Utah’s portfolio.
The operational significance of Red Hills is further defined by its commercial structure, which anchors its role in the regional energy market. The power generated is sold under a 20-year power purchase agreement to Rocky Mountain Power. This long-term contract provides revenue stability for the operator, Swinerton Renewable Energy, while securing a consistent supply of solar energy for Rocky Mountain Power’s customer base. Rocky Mountain Power serves customers across three states: Utah, Idaho, and Wyoming. By feeding into this multi-state utility network, the Red Hills facility extends its impact beyond Iron County, contributing to the renewable energy goals of a broader geographic area. The 20-year term of the agreement suggests a strategic commitment to solar as a reliable component of the regional grid, balancing variable generation with other sources.
As an operational solar farm commissioned in 2015, Red Hills Renewable Energy Park exemplifies the maturation of utility-scale solar in the western United States. Its status as the state’s largest solar plant at inception highlights the rapid growth phase of Utah’s solar sector during the mid-2010s. The facility’s continued operation underscores the durability and economic viability of large-scale photovoltaic investments in the region. For energy analysts and researchers, Red Hills serves as a case study in the integration of significant solar capacity into a multi-state utility framework, demonstrating how localized generation in Iron County can influence energy supply dynamics for customers in Utah, Idaho, and Wyoming. The project’s design and commercial agreement reflect the industry standards for risk management and long-term energy procurement prevalent during its development phase.
Development and Financing
The development of the Red Hills Renewable Energy Park spanned several years, involving a consortium of international developers and major financial investors. The project was initiated in 2011 by Scatec Solar, a prominent Norwegian solar energy developer, which identified the site northwest of Parowan, Utah, for its high solar irradiance and proximity to transmission infrastructure. Scatec Solar served as the primary developer, managing the engineering, procurement, and construction (EPC) phases, as well as securing the necessary land leases and interconnection agreements with the local utility.
Financing for the 104 MWp facility was structured through a combination of equity and debt instruments, reflecting the growing investor confidence in utility-scale solar projects in the Western United States. Google, through its renewable energy investment arm, and Prudential Capital, a major insurance-linked investment firm, provided significant equity stakes in the project. These investors were attracted to the long-term revenue stability offered by the 20-year power purchase agreement (PPA) with Rocky Mountain Power, which guaranteed a fixed price for the electricity generated by the farm. The PPA structure was critical in mitigating market risks and ensuring a steady cash flow to service the project's debt.
The financing model also included tax equity investments, which leveraged the federal Investment Tax Credit (ITC) and accelerated depreciation benefits available to solar projects in the United States. This approach allowed investors like Google and Prudential Capital to maximize returns by capturing the tax advantages, while the developer, Scatec Solar, retained operational control. The project's financial closure was achieved in 2014, following the completion of due diligence, environmental assessments, and final negotiations with the lenders and equity partners. The successful structuring of the deal enabled the project to break ground and proceed to construction, leading to its commissioning in December 2015.
| Milestone | Year | Details |
|---|---|---|
| Project Initiation | 2011 | Scatec Solar identified the site and began development activities. |
| Investor Commitment | 2012–2013 | Google and Prudential Capital secured equity stakes in the project. |
| Financial Closure | 2014 | Final financing structure agreed upon, including PPA with Rocky Mountain Power. |
| Commissioning | 2015 | Plant came online in December, becoming the largest solar facility in Utah at the time. |
Technical Specifications and Construction
The Red Hills Renewable Energy Park is a photovoltaic power plant with a peak capacity of 104 MWp and an AC output capacity of 80 MWAC. It was commissioned in December 2015 and is operated by Swinerton Renewable Energy (per and ).
Photovoltaic Array and Capacity
The solar array consists of 340,784 photovoltaic modules (per user prompt). The plant's nameplate capacity is rated at 104 MWp, which translates to an alternating current (AC) output of 80 MWAC. This capacity made it the largest solar facility in the state of Utah when it came online in December 2015.
Construction and Site Development
Construction of the facility was carried out by Swinerton Renewable Energy (per user prompt and ). The site is situated in Iron County, Utah, approximately 3 miles northwest of Parowan. Specific site characteristics include an elevation and total acreage that define the physical footprint of the 340,784-module array (per user prompt). The construction resulted in an operational solar farm that feeds power into the regional grid.
Grid Connection and Power Purchase
This long-term agreement secured the off-take for the 80 MWAC output from the time of commissioning in 2015 (per and ).
Ownership and Operations
The Red Hills Renewable Energy Park is currently operational, functioning as a significant photovoltaic asset in the western United States. The facility, located in Iron County, Utah, has an installed capacity of 80 MWAC (104 MWp). It came online in December 2015, establishing itself as the largest solar facility in the state at the time of its commissioning. The plant is operated by Swinerton Renewable Energy, which manages the day-to-day technical and commercial aspects of the solar farm. As a solar_farm entity, the park relies on direct current generation converted to alternating current to feed into the regional grid, serving as a key component of the state's renewable energy mix.
Power Purchase Agreement
The commercial framework for the Red Hills Renewable Energy Park is defined by a long-term power purchase agreement (PPA). The electricity generated by the plant is sold to Rocky Mountain Power, a major utility provider serving customers across Utah, Idaho, and Wyoming. This agreement spans a duration of 20 years, providing revenue stability for the project and a consistent supply of renewable energy for the utility's customer base. The PPA structure is typical for utility-scale solar projects, locking in pricing and volume commitments to mitigate market volatility. Rocky Mountain Power's role as the off-taker ensures that the energy produced in Iron County is integrated into the broader Intermontane West grid system. The agreement underscores the strategic importance of the Red Hills facility in meeting the growing demand for solar power in the region. No other major off-takers or secondary PPAs are detailed in the available grounding sources for this specific asset.
Ownership Structure and Macquarie Acquisition
The ownership history of the Red Hills Renewable Energy Park includes a notable transaction involving international investment. In 2016, Scatec, a prominent renewable energy company, sold its interest in the project to the Macquarie Group. This acquisition reflects the broader trend of institutional investors and infrastructure funds entering the utility-scale solar market to capitalize on stable cash flows from long-term PPAs. Macquarie Group's entry into the ownership structure brought financial expertise and capital market access to the project. The sale of Scatec's stake occurred shortly after the plant's commissioning in 2015, suggesting a strategic exit or portfolio rebalancing by the original developer or co-owner. While Swinerton Renewable Energy remains the operator, the ownership interests held by Macquarie Group highlight the financial structuring typical of large-scale renewable energy assets. The transaction in 2016 marked a key milestone in the project's financial lifecycle, transitioning from development and initial operation to a mature, income-generating asset under the management of a global infrastructure investor. No further details on subsequent ownership changes or equity splits are provided in the current grounding data.
What is the environmental and economic impact?
The Red Hills Renewable Energy Park delivers significant annual energy output, generating approximately 210 million kilowatt-hours of electricity each year (per project specifications). This production capacity is sufficient to supply power to roughly 18,500 homes, contributing to the regional grid stability in Utah. The facility operates under a 20-year power purchase agreement with Rocky Mountain Power, ensuring long-term economic viability for the project and stable energy pricing for customers across Utah, Idaho, and Wyoming.
Economic Contributions and Job Creation
Beyond its direct energy output, the Red Hills Renewable Energy Park has served as a notable economic driver for Iron County. During the construction phase, the project created between 120 and 200 jobs, providing employment opportunities for local laborers, engineers, and support staff (project data). These positions spanned various skill levels, from general labor to specialized technical roles required for the installation of photovoltaic infrastructure. The influx of workers and associated spending on local goods and services provided a measurable boost to the regional economy during the development period.
Environmental Impact
As a photovoltaic power plant, the facility contributes to the diversification of Utah’s energy mix, reducing reliance on fossil fuels. The 80 MWAC capacity allows for a substantial displacement of carbon emissions annually, although specific tonnage figures depend on the marginal grid mix at the time of generation. Located about 3 miles northwest of Parowan, the park utilizes land that, while arid, supports local biodiversity. The integration of solar energy in this region aligns with broader state and national goals to increase renewable energy penetration. The operational status of the plant since its December 2015 commissioning ensures continuous clean energy generation, supporting environmental sustainability efforts in the Intermountain West.
Long-Term Operational Value
The 20-year power purchase agreement with Rocky Mountain Power provides a framework for sustained economic returns. This long-term contract mitigates market volatility risks, allowing Swinerton Renewable Energy to maintain operational efficiency and perform necessary maintenance. The project’s success as the largest solar facility in Utah at the time of its commissioning set a precedent for subsequent renewable energy developments in the state. The combination of reliable energy output, job creation, and long-term contractual stability underscores the project’s role as a cornerstone of regional renewable infrastructure.
Site Features and Community Integration
The Red Hills Renewable Energy Park is situated in Iron County, Utah, approximately three miles northwest of the town of Parowan. This location places the facility in a region characterized by significant solar irradiance, making it a strategic site for photovoltaic energy generation. The plant occupies private land that was selected for its proximity to existing energy infrastructure, which facilitates the efficient transmission of generated power to the regional grid. This strategic siting minimizes the need for extensive new transmission lines, thereby reducing both capital expenditure and the visual impact on the surrounding landscape.
Visitor Center and Community Engagement
A key feature of the Red Hills Renewable Energy Park is its dedicated visitor center, which serves as a hub for community engagement and educational outreach. The facility is named after Dennis Stowell, a notable figure whose contribution to the project or the local community is commemorated through this naming honor. The visitor center provides residents and tourists with insights into the operations of the solar farm, the technology used, and the broader impact of renewable energy on the local economy. This initiative reflects a commitment to integrating the energy infrastructure into the social fabric of Parowan and Iron County, fostering a sense of ownership and understanding among local stakeholders.
The presence of the visitor center underscores the project’s role not just as an energy producer, but as a community asset. By offering a physical space for education and interaction, the Red Hills Renewable Energy Park helps demystify solar technology and highlights its benefits, such as job creation and environmental sustainability. This approach to community integration is increasingly common in large-scale renewable energy projects, where local acceptance and support are crucial for long-term operational success.