Canadian independent power producer TransAlta Renewables Inc. has entered into an arrangement to acquire two construction-ready projects in the U.S. Northeast.
The projects consist of a 90 MW Pennsylvania wind farm with a 15-year power purchase agreement (PPA) and a 29 MW New Hampshire wind farm with two 20-year PPAs.
The total cost of the two projects is estimated to be $240 million, of which approximately 70% will be funded in 2018 and the remainder in 2019. The commercial operations date for both projects is expected during the second half of 2019.
“This acquisition demonstrates our commitment to grow and diversify our cash flows through the addition of long-term contracted assets with high-quality counterparties and expands our presence in the United States,” says John Kousinioris, president of TransAlta Renewables.
TransAlta Renewables will fund the acquisition and construction costs using its existing liquidity and tax equity. The acquisition of the projects is subject to a number of closing conditions, including customary regulatory approvals and, in the case of the New Hampshire project, the receipt of a favorable regulatory determination in relation to the permitting of the project.
The company currently has interests in 18 wind facilities, 13 hydroelectric facilities, seven natural gas-generation facilities and one natural gas pipeline, representing an ownership interest of 2,316 MW of net generating capacity, located in British Columbia, Alberta, Ontario, Québec, New Brunswick, Wyoming and Western Australia.
