Clearway to take full control of 530-MW solar portfolio in Utah
Clearway's Hurricane Creek solar farm in Illinois. Image by Clearway Energy Group.
Clearway Energy Inc (NYSE:CWEN) said on Monday it has agreed to buy the 50% stake it does not already own in a 530-MW portfolio of operational solar parks in Utah.
The company, which has over 4.7 GW net of installed wind and solar generation capacity in the US, will pay USD 335 million (EUR 285.3m) to take full ownership of the Utah portfolio. The bundle in question consists of seven utility-scale solar farms that were brought online in 2016.
All plants operate under 20-year power purchase agreements (PPAs) with electric utility PacifiCorp and have around 15 years remaining.
“With this transaction, Clearway will invest in new growth at attractive economics, increase its long-term contracted cash flow from utility-scale solar, and further diversify its portfolio on a regional basis,” said Clearway’s president and CEO Christopher Sotos.
Clearway plans to fund part of the deal with new non-recourse debt of between USD 210 million and USD 240 million. Based on the current expected terms and conditions of this financing, the acquisition is seen to provide annual levered asset cash available for distribution (CAFD) on a five-year average basis of around USD 9 million-11 million.
The acquisition is seen to be finalised in the closing quarter of this year. Once completed, Clearway will consolidate the Utah portfolio in its financial statements, it said.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.