Clearway Energy, Inc. (CWEN) and its renewable development partner and parent company, Clearway Energy Group LLC (CEG), have announced agreements providing for CWEN’s co-investment in a 1204 MW portfolio of renewable energy projects developed by CEG.
The portfolio will consist of:
- 1012 MW from five geographically diversified wind, solar, and solar plus storage assets under development
- the 192 MW Rosamond Central solar project, which is expected to commence operations by the end of 2020.
Additionally, the parties amended the existing partnership agreement for the 419 MW Mesquite Star wind project, providing CWEN an additional 27.51% of the project’s cash flows after 1H2031.
Approximately 90% of the generation from the projects are contracted with a diverse group of primarily investment grade counterparties, including utilities and load serving entities, Fortune 500 corporations, commercial and industrial customers, and financial institutions. The portfolio has a greater than 14-year blended average contract length. Subject to closing adjustments and the projects achieving certain milestones, CWEN expects to invest approximately US$214 million in corporate capital by the end of 2022. Based on the current expected timing of the projects achieving cash on delivery, CWEN expects – before corporate financing costs – the asset cash available for distribution contribution from the investments to be immaterial in 2021, approximately US$9 million in 2022, and US$20 million on a five-year average basis beginning on 1 January 2023.
Under the portfolio partnership agreements, CWEN will act as managing member. The remaining interest in the cash equity partnerships will be owned by Hannon Armstrong Sustainable Infrastructure Capital, Inc., an investor in climate solutions.
On 21 December 2020, CWEN acquired its 50% cash equity interest in Rosamond Central for US$23 million and completed the amendment for the additional interest in Mesquite Star. The Mesquite Sky wind farm in Texas, US, and the Black Rock wind farm in West Virginia, US, will commence construction in the coming weeks. Definitive agreements relating to the Daggett, Waiawa, and Mililani projects, also situated in the US, remain subject to certain conditions and the review and approval by CWEN’s Independent Directors.
CEG will serve as the long-term site operator and asset manager, ensuring continuity of performance and community engagement over the life of each project.
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Read the article online at: https://www.energyglobal.com/solar/23122020/clearway-energy-inc-invests-in-renewable-energy/