Ecofin US Renewables to buy 60-MW Texas wind farm

Siemens wind turbine. Source: Siemens AG.

October 22 (Renewables Now) - Ecofin US Renewables Infrastructure Trust PLC (LON:RNEW) said on Thursday that it has made a contractual commitment to acquire the 60-MW Whirlwind wind park in Texas for USD 49 million (EUR 42.1m).

The deal will be funded through the remaining proceeds of the renewable energy trust's USD-250-million initial public offering (IPO) in late 2020 as well as a USD-65-million (EUR 55.8m) revolving credit facility unveiled on Tuesday.

Whirlwind, located in Floyd County, was developed by RES and went online in late 2007. It uses 26 Siemens 2.3-MW wind turbines and has a long-term service and maintenance agreement with Siemens Gamesa. The wind park has a fixed-price power purchase agreement (PPA) with an investment-grade electric utility, with more than six years remaining on the initial contract term.

The transaction is expected to close before the end of October, after the existing project lender releases liabilities with debt being fully repaid under the acquisition.

The purchase of the operating onshore wind asset is seen to diversify RNEW's existing solar portfolio in terms of technology and geographical location, which ensures rising electricity demand by individuals and businesses.

"With electricity prices linked to natural gas prices, which have been rising, these factors provide a good backdrop for re-contracting in the future and potential for inflation protection," the UK company said.

RNEW's investment manager Ecofin has submitted bids on a USD-171-million near-term pipeline of wind and solar assets.

(USD 1 = EUR 0.859)

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