US power company Clearway Energy Inc (NYSE:NYLD) has signed binding deals with its sponsor, Clearway Group (CEG), to acquire or invest in a number of wind projects representing 482 MW of combined capacity.
The agreed transaction represents the drop-down of a 100% stake in Rattlesnake Flat LLC, which is the owner of the 144-MW Rattlesnake wind farm in Adams County, Washington, and the interest Clearway Energy does not already have in the vehicle that holds the 161-MW Wildorado and 122-MW Elbow Creek wind parks that were previously repowered.
Also, through an indirect unit, Clearway Energy has agreed to contribute its interests in the 55-MW Pinnacle wind farm in Mineral County, West Virginia, to a new partnership with CEG in order to facilitate a repowering of the asset. As part of that agreement, the company has pledged to make an additional USD-27-million (EUR 24.9m) payment to CEG in 2031.
Clearway Energy said it will invest an estimated USD 241 million in corporate capital as part of the above-mentioned agreements. The transactions in turn are seen to contribute a five-year average annual asset cash available for distribution (CAFD) of about USD 23 million before corporate financing costs.
All of the projects are expected to achieve commercial operation by the end of the year.
The company also noted that the Rattlesnake wind park has a 20-year power purchase agreement (PPA) with Avista Corp (NYSE:AVA), while the existing Pinnacle Wind plant has a PPA with investment grade counterparties that runs through 2031.
(USD 1.0 = EUR 0.923)
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