Clearway Energy acquires wind projects
Published by Sarah Smith,
Assistant Editor
Energy Global,
Clearway Energy, Inc. has announced that, through indirect subsidiaries of the company, it has entered into binding agreements related to a drop-down offer from Clearway Group (CEG) to acquire and invest in a portfolio of renewable energy projects.
These agreements commit the company, at closing, to invest an estimated US$241 million in corporate capital, subject to closing adjustments. The transactions are expected to have a five-year average annual asset CAFD of approximately US$23 million prior to corporate financing costs.
The following projects are included in the drop-down:
- Rattlesnake Wind: The company has signed agreements to acquire 100% of the equity interests in Rattlesnake Flat, LLC, which owns the Rattlesnake Wind Project, a 144 net MW wind facility located in Adams County, Washington, US. The project has a 20-year power purchase agreement with Avista.
- Remaining Interest in Repowering 1.0: Clearway Energy has signed an agreement to acquire CEG’s remaining interest in Repowering Partnership II LLC (Repowering 1.0), which would give the company sole ownership of the Partnership. Repowering 1.0 includes the 161 MW Wildorado and 122 MW Elbow Creek wind projects, which were previously repowered.
- Pinnacle Wind Repowering: The company, through an indirect subsidiary, agreed to enter into a new partnership with CEG to repower the Pinnacle Wind Project, a 55 net MW wind facility located in Mineral County, West Virginia, US. In order to facilitate the repowering, Clearway Energy will contribute its interests in the Pinnacle Wind Project into the partnership. The existing Pinnacle Wind power purchase agreements with investment grade counterparties continue to run through 2031. As part of the agreement, the company has committed to make an additional payment to CEG, subject to closing adjustments, of US$27 million in 2031.
Clearway Energy currently intends to fund the transactions with existing corporate liquidity. This funding will occur upon each project achieving its requisite closing conditions including commercial operations, of which Clearway Energy currently expects all projects to reach by the end of 2020.
Read the article online at: https://www.energyglobal.com/wind/22042020/clearway-energy-acquires-wind-projects/
You might also like
Ireland starts national offshore renewable study
The Minister for Climate, Environment and Energy, Darragh O’Brien, has announced the commencement of work on the preparation of a National Offshore Renewable Energy Designated Maritime Area Plan.