Algonquin Power & Utilities Corp. (APUC) has successfully acquired the remaining 40% of a 400 MW wind power portfolio in the U.S. from Gamesa Wind US LLC for total consideration of approximately $115 million.
Prior to the deal, APUC owned a 60% controlling interest in the projects, which were initially acquired through a newly formed partnership whose original members included APCo, Gamesa and certain tax equity investors. In December 2013, APUC announced its agreement to purchase the remaining 40% interest.
The 400 MW wind portfolio consists of three facilities: the 200 MW Minonk wind farm in Illinois, 150 MW Senate wind farm in Texas and 50 MW Sandy Ridge wind farm in Pennsylvania.
APUC has been the majority owner and manager of the projects since commercial operation was achieved in 2012; therefore, the company says it expects no additional ongoing management or administrative costs. Gamesa will continue to provide operations, warranty and maintenance services for the wind turbines and balance-of-plant facilities under 20-year contracts.
‘With little additional overhead costs anticipated, we expect investment in the full ownership of this portfolio of high-quality wind assets to contribute accretive, low-risk earnings and cash flow to APUC,’ comments Ian Robertson, CEO of APUC. ‘We are very pleased to be the sole owner of these assets, and we see tremendous opportunity to grow our portfolio by leveraging the expertise we have gained in the U.S. power markets in which these wind facilities operate.’
Substantially all of the energy from the projects is sold under fixed-price power sales contracts, including long-term hedge agreements with a remaining weighted average life of 11 years. Ancillary services, including capacity and renewable energy credits, are contracted into the energy markets in which the facilities are located.