TransAlta Renewables to buy 122 MW US solar portfolio

TransAlta Renewables Inc. has entered into definitive agreements for the acquisition of a 122 MW portfolio of operating solar facilities located in North Carolina, US.

The assets will be acquired from a fund managed by Copenhagen Infrastructure Partners for US$96.65 million. The acquisition will be funded using existing liquidity. Income distributions to the company will be net of cash and tax attributes provided to the tax equity investor. The acquisition is expected to close in the fourth quarter of 2021. The transaction is structured so that at closing, TransAlta Renewables will acquire a 100% economic interest in North Carolina Solar from a wholly-owned subsidiary of TransAlta Corporation through a tracking share structure.

The North Carolina Solar portfolio consists of 20 solar photovoltaic facilities across North Carolina, with an aggregate capacity of 122 MW. The solar farms are all operational and were commissioned between November 2019 and May 2021. The facilities are secured by long-term power purchase agreements with two subsidiaries of Duke Energy with an average remaining term of 12 years. Under the PPAs, Duke receives the renewable electricity, capacity, and environmental attributes from each facility.