Panda Power Funds has begun construction work on a 758MW Panda Temple Generating Station, a natural gas-fueled, combined-cycle power plant located in Temple in the US state of Texas.
Morgan Stanley and Ares Capital have arranged debt finance for the project, which will be built by a turn-key construction consortium of Bechtel and Siemens Energy.
Under the terms of the contract, Bechtel will be in charge of installation, construction and commissioning of the facility and will be responsible for the engineering and procurement for the balance of the plant.
Natural gas turbines, steam turbine and waste heat recovery boilers will be supplied by Siemens.
Panda Power Funds president Todd Carter said, "Today, we break ground for Texas -- to provide our state with the power it needs for future growth and economic vitality; for our Panda team -- who never gave up in spite of the national recession and its many setbacks; and for our investors -- who have made this day possible."
The project is being developed to address the growing need of power in the state and to assist the Electric Reliability Council of Texas, the state's grid operator, to maintain reserves for the grid reliability.
Panda Power has designed the power plant to begin power production within ten minutes of startup and reach full production capacity in 30 minutes.
The quick-start gas turbines will help decrease the startup emissions too.
The project is expected to start commercial operations by the end of 2014 and will be able to produce enough electricity to meet the power needs of 750,000 homes in the region.