Pattern Energy Group has closed on its commitment to acquire 172 MW of owned interest in the 218 MW Panhandle 1 wind project from Pattern Energy Group LP for $124.4 million. The balance of the project has been acquired from Pattern Development by three institutional tax equity investors.
Panhandle 1, located in Carson County, Texas, consists of 118 GE 1.85 MW wind turbines. And due to the build-out of the Competitive Renewable Energy Zone (CREZ) transmission infrastructure, the wind farm interconnects with grid operator Electric Reliability Council of Texas (ERCOT).
Approximately 77% of the expected output of Panhandle 1 is contracted under a 13-year energy price hedge, with an A-/Baa2 credit-rated affiliate of Citibank, with the balance sold at ERCOT's spot market prices.
‘This acquisition adds 16 percent to our operating capacity and marks our third project to successfully reach completion this year,’ says Mike Garland, Pattern Energy's president and CEO. ‘It is the second project we have acquired from Pattern Development that has gone into operation since our IPO – again demonstrating the value of that strategic partnership – and we anticipate their extensive pipeline will create more opportunities that will help us meet or exceed our growth plans.’
‘Panhandle 1 is located on one of the best wind sites in the U.S. with a strong wind resource and excellent access to transmission,’ Garland notes. ‘The strength and reliability of the wind, coupled with an unleveraged finance structure, will result in stable, steady cash flows from the project.’