ALLETE Clean Energy has agreed to acquire the 100.5 MW AES Armenia Mountain Wind Project from AES Corp. (AES) and a non-controlling interest from a minority shareholder for a total of $108 million, plus the assumption of existing debt.
According to ALLETE, the purchase agreement was signed on April 30, following an April 1 decision to exercise its purchase option on the wind farm. The transaction is expected to close in July.
Located in the PJM electricity market near the New York-Pennsylvania border, Armenia Mountain's 67 1.5 MW GE wind turbines were installed in 2009. All of the facility's energy output is sold through existing power purchase agreements that extend through 2025.
‘This acquisition continues our steady growth, with AES's operating assets to total 540 MW,’ says Eric Norberg, president of ALLETE Clean Energy. ‘By moving into a different area of the country with a thriving renewable energy market, ACE builds upon its operational and entrepreneurial experience.’
This is the fourth wind facility ALLETE Clean Energy has acquired from AES and the seventh in its portfolio.
In January 2014, the ALLETE subsidiary finalized the acquisition of wind energy projects with a total capacity of 231 MW in Lake Benton, Minn., Storm Lake, Iowa, and Condon, Ore.
In November 2014, ALLETE Clean Energy also finalized a major development agreement with Montana-Dakota Utilities, a division of MDU Resources Group acquiring the rights to develop and construct a 107 MW wind facility near Hettinger, N.D., and then sell the project to Montana-Dakota Utilities for approximately $200 million, pending regulatory approval.
Morgan Stanley acted as financial advisor to ALLETE Clean Energy.
ALLETE Clean Energy was established in 2011 to acquire or develop capital projects to create energy solutions by way of wind, solar, biomass, hydro, natural gas, shale resources, clean coal technology and other emerging energy innovations.