Invenergy’s $600M Solar Project Nears Approval in Lonoke County

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A Chicago company’s plans to build a $600 million solar energy project mostly in Lonoke County seemed on the verge of approval last week.

The 300-megawatt, 6,000-acre project, the Downstream Solar Energy Center, would be the second in Arkansas by Invenergy, a privately held leader in renewable energy development.

The company, largely owned by Canadian pension plan Caisse de depot et placement du Quebec (CDPQ), built the 100-megawatt Walnut Bend Solar facility in Lee County.

Entergy Arkansas acquired that project and has been generating power from it since September 2024.

Invenergy is developing two other solar farms in Arkansas, the 450-megawatt Chalk Bluff project in St. Francis County, and the 155-megawatt Decoy Solar Energy Center in Arkansas County, which would provide power for Meta Platforms Inc., formerly Facebook.

The Downstream project will be on leased land north of Keo. About 600 of the 6,000 acres will be in Pulaski County. It would be one of the state’s largest solar projects by wattage, capable of powering about 70,000 homes.

Lonoke County Judge Doug Erwin approved Invenergy’s request for up to $700 million in bonds to support a payment in lieu of taxes (PILOT) to advance the solar project. Erwin didn’t immediately respond to a call seeking comment.

Pulaski County Judge Barry Hyde was days away from deciding whether to support a PILOT plan in his jurisdiction, according to Pulaski County Attorney Adam Fogleman.

Invenergy, which has lease agreements with a dozen individual Arkansas landowners, has asked for a 30-year PILOT with a 65% tax abatement.

“Judge Hyde … is taking every consideration right now,” Fogleman said in a telephone interview Aug. 21. “We’re expecting a decision to come out in the next week or two.”

Invenergy’s plan calls for Pulaski County to get an additional $640,000 in property taxes on the acreage over the 30-year PILOT period, with Lonoke County reaping more than $6 million. The land’s taxable value will increase “based on the transition of the land from agricultural to industrial and commercial status,” Fogleman said.

The England School District and the Pulaski County School District would benefit as well, reaping $25 million and $15 million, respectively, over the next three decades.

In a news release, Keo Mayor Stephanie White said she’s seeking a community investment deal with Invenergy to improve broadband infrastructure and a building owned by the city of 200. “We’re very happy for the landowners who were able to secure the agreements with Invenergy, but we’re looking for an investment in the community,” White said.

The project is expected to generate about 300 construction jobs at its peak, and perhaps three full-time jobs once it’s completed. Invenergy has not answered questions about who the electricity offtaker will be, but Entergy would transfer the power to MISO South’s transmission grid.

At public meetings in Lonoke and Pulaski counties, some residents voiced concerns about CDPQ’s ownership stake in Invenergy. CDPQ, which manages assets for Quebec’s public pension and insurance plans, had assets in Canadian dollars of $473 billion at the end of last year. That translates into about $340 billion in U.S. currency.

Fogleman couldn’t predict what Judge Hyde’s decision would be on Downstream, but most signals seem positive.

“In the last decade of County Judge Hyde’s leadership, Pulaski County has taken a vocal position of leadership advocating for the development of renewable energy, which supports economic development in the county and across the region,” Fogleman said.