Clearway builds up 51% stake in 290-MW solar park in Arizona

Clearway Energy Inc (NYSE:CWEN) will become the majority shareholder of the 290-MW Agua Caliente solar complex in Arizona, it announced on Friday.

The company has signed a binding agreement to purchase a further 35% stake in the solar farm, in addition to the 16% interest it already owns. Thus it will take the controlling 51% stake in exchange for USD 202 million (EUR 170m) for the latest purchase, which it said will finance with existing liquidity and new corporate financings.

Located in Dateland, the Agua Caliente solar complex operates under a 25-year power purchase agreement with Californian utility PG&E, with around 19 years remaining.

As its controlling shareholder, Clearway Energy will consolidate the asset in its financial statements, including its USD-735 million non-recourse debt due in 2037. The power plant is expected to provide incremental annual cash available for distribution (CAFD) on a five-year average basis of USD 20 million prior to corporate financing.

The deal is expected to be finalised in the first quarter of 2021.

Clearway Energy, a portfolio company of Global Infrastructure Partners III (GIP), has a portfolio of over 7 GW of wind, solar, natural gas power plants and district energy systems.

(USD 1.0 = EUR 0.842)

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