Pattern Energy Group has acquired the 200 MW Logan's Gap Wind project for $113 million from Pattern Energy Group LP.
Logan's Gap Wind, currently under construction in Comanche County, Texas, consists of 87 Siemens 2.3 MW wind turbines. Located near the Dallas-Fort Worth area, the wind farm will be the company's fourth wind project in Texas, serving three different regions throughout the state.
Upon completion of the project, Pattern Energy will have an owned interest of 164 MW, and three institutional tax equity investors will acquire the balance. Following construction, the project is structured to be financed with all equity – as opposed to project debt.
Wal-Mart Stores Inc. has agreed to purchase to 58% of the expected output from the project over 10 years. Seventeen percent of the expected output will be sold under a 13-year fixed price agreement with an A-/Baa2-rated financial institution. The remaining 25% of expected output will be sold at spot market prices within the Electric Reliability Council of Texas.
Pattern Energy has the right of first offer (ROFO) to Pattern Development's project development pipeline, which includes more than 3,000 MW. Projects are added to Pattern Energy's list of identified ROFO projects when they reach identified milestones, such as when a project has executed a power purchase agreement.
Through its agreement with Pattern Development, Pattern Energy is able to acquire projects that have substantially reduced development risks, the company notes.