TerraForm Power, Inc. has announced that it has entered into a definitive agreement to acquire a high-quality, unlevered distributed generation platform with up to 320 MW of capacity in the United States from subsidiaries of AltaGas Ltd for a total purchase price of US$720 million.
The portfolio represents one of the largest distributed generation platforms in the United States, comprised of 291 megawatts of commercial and industrial solar assets, 21 megawatts of residential solar assets and 10 megawatts of fuel cells. Diversified across 20 states and in the District of Columbia and with over 100 commercial and industrial customers, the portfolio is comprised of assets with an average age of 3.5 years that have power purchase agreements with an average investment-grade credit rating of A+/A2 and an average remaining term of over 17 years.
TerraForm Power plans to initially fund the acquisition with a US$475 million bridge facility and draws on its corporate revolver. Permanent financing is expected to be comprised of US$475 million of project-level debt on this unlevered portfolio that is sized to investment grade metrics and proceeds of US$245 million from the sale of minority interests in identified North American wind assets.
The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2019.
John Stinebaugh, CEO of TerraForm Power said: “Following the close of this transaction, TerraForm Power is expected to own one of the largest portfolios of distributed generation in the United States. The acquisition will increase TerraForm Power’s average contract duration to 14 years and enhance its resource diversity.”
TerraForm Power acquires, owns and operates a best-in-class renewable power portfolio of solar and wind assets located in North America and Western Europe. TerraForm Power is the owner and operator of an over 3,700 megawatt diversified portfolio of high-quality solar and wind assets underpinned by long-term contracts. TerraForm Power is listed on the Nasdaq stock exchange. It is sponsored by Brookfield Asset Management, Inc., a leading global alternative asset manager with more than US$365 billion of assets under management.
American Electric Power announced that its Public Service Co. of Oklahoma (PSO) and Southwestern Electric Power Co. (SWEPCO) companies are seeking regulatory approvals to purchase three wind projects, totaling 1,485 MW, that are currently under development in Oklahoma.
Read moreLongroad Energy, a US-based renewable energy developer, owner and operator, has announced the financial close and start of construction of its El Campo wind farm in Knox County, Texas. The two Danish pension funds PKA and PenSam, represented by their investment manager AIP, also became long-term investors alongside Longroad.
Read more
EDF Renewables North America has signed a Power Purchase Agreement (PPA) deal with NV Energy for the Arrow Canyon Solar Project. The project features 200 megawatts (MWac) photovoltaic park with 75 MW-5hr battery storage and is located in Clark County, Nevada. It is expected to begin delivery of clean electricity in December 2022.
Read more
New Jersey Board of Public Utilities (NJBPU) has awarded Ørsted as the preferred bidder for the New Jersey’s first large-scale offshore wind tender with a 1.1 GW project named "Ocean Wind". It will be the first offshore wind farm in the US to cross the 1 GW mark. The NJBPU unanimously voted for Ørsted´s project.
Read moreMitsubishi Hitachi Power Systems (MHPS) and Magnum Development announced an initiative to launch the Advanced Clean Energy Storage (ACES) project in central Utah. In the world’s largest project of its kind, the ACES initiative will develop 1,000 megawatts of 100 percent clean energy storage, thereby deploying technologies and strategies essential to a decarbonized future for the power grid of the Western United States.
Read more