RWE to divest 24% stake in 861 MW wind projects in Texas

RWE has signed an agreement with Greencoat to sell a 24% stake in four RWE onshore wind farms in Texas, USA. The agreed purchase price of around US$160 million corresponds to an enterprise value of around US$300 million (for the 24% stake). Three projects are in operation and one under construction.

Following the closing of the transaction, RWE will continue to operate all four wind farms. The agreement with Greencoat follows the announcement on 14 December 2020 of RWE to reduce its 100% stake in the four onshore wind farms and to sell a 51% stake to a subsidiary of Algonquin Power & Utilities Corp. The assets will thus be 51% owned by Algonquin, 25% by RWE, and 24% by Greencoat.

The four onshore wind farms for which the parties agreed to enter a partnership are Stella, Cranell as well as East and West Raymond. With a total installed capacity of 861 MW, they are located in the coastal region of south Texas. Stella Wind Farm (201 MW) was commissioned in December 2018 and Cranell Wind Farm (220 MW) in September 2020, followed by East Raymond Wind Farm (200 MW) in December. West Raymond Wind Farm (240 MW) is currently under construction and expected to be commissioned in the first quarter of 2021.

The transaction is expected to close in the first quarter of 2021.