Capital Power to buy US renewables developer Element Power
Dec 4, 2014 - Canadian power producer Capital Power Corp (TSE:CPX) said on Thursday it had sealed a USD-69-million (EUR 55.8m) deal to buy renewable energy developer Element Power US LLC.
Through this transaction, Capital Power will acquire 10 wind farms and four solar parks in the US. This includes a project that has a power purchase agreement (PPA) with Duke Energy Progress Inc (OTCBB:CPWLP) for 15 MW of solar energy as well as the 50-MW Macho Springs wind park in the state of New Mexico.
The particular wind farm consists of 28 Vestas 1.8-MW turbines. It was completed in November 2011 and is selling its output to Tucson Electric Power Co under a long-term contract.
The deal value takes into consideration USD 52 million worth of project financing debt that will be assumed by Capital Power. The transaction has to be cleared by the Federal Energy Regulatory Commission (FERC) and is seen to close by the end of the year.