TransAlta Corp., based in Calgary, Alberta, acquired 71 MW of renewable generation assets from an affiliate of Rockland Capital LLC for $75.8 million.
According to TransAlta, the deal is in addition to the assumption of certain tax equity obligations and $41.8 million of nonrecourse project debt.
The company says the acquired assets include 21 MW of solar projects located in Massachusetts and a 50 MW wind facility in Minnesota. The assets are contracted under long-term power purchase agreements (PPAs) ranging from 20 to 30 years. The acquisition is subject to customary regulatory approvals and is expected to close by the end of September.
The wind farm, which is powered by 32 GE 1.5 MW XLE wind turbines, has been operational since March 2014 and is contracted under three long-term PPAs until 2034 with ‘high-quality’ off-takers.
The solar assets are qualified under the first phase of the Massachusetts Solar Renewable Energy Credit program, which was established to encourage investment in distributed solar generation, notes TransAlta.
‘The acquisition marks our first solar project and aligns with our strategy of growing our renewables platform, diversifying our portfolio and increasing the pipeline of assets for potential future drop-downs into TransAlta Renewables,’ says Dawn Farrell, president and CEO of TransAlta. ‘The expansion into new geographic markets and technologies further enhances our position as a leader in renewable energy and provides potential for future opportunities in the U.S. solar and wind space.’