Enel Green Power signs equity partnership accord for 200-MW Minnesota wind farm
Aug 6, 2012 - Italy's Enel Green Power (BIT:EGPW) said Monday it reached an equity partnership agreement with a General Electric (NYSE:GE) unit for the construction of a 200-MW wind farm in US Minnesota worth USD 305 million (EUR 246m).
Enel Green Power, via its subsidiary Enel Green Power North America (EGP NA), signed the deal with GE's subsidiary EFS Prairie Rose. EGP NA will invest USD 149 million in the project for a 49% stake in it, while EFS Prairie Rose will have 51% in exchange of an investment of USD 156 million.
EGP NA will have an option to buy further 26% in the project from EFS Prairie Rose on pre-set dates in 2012 and 2013, Enel Green Power said in a statement.
EGP NA and EFS Prairie Rose also signed a capital contribution agreement with a syndicate led by JP Morgan (NYSE:JPM) and including Wells Fargo Wind Holdings LLC and Metropolitan Life Insurance Company. Under the accord the syndicate pledged a tax equity contribution of USD 190 million for the Prairie Rose project, to be released at the commercial operation date slated for the fourth quarter of 2012. With the funding the members of the syndicate will become partners in the wind farm project with limited voting rights. Via the equity participation, the syndicate contributors will be able to receive part of the tax and financial benefits granted to the project.
EGP NA is developing the Prairie Rose project under a strategic partnership accord with Geronimo Wind Energy.
The project has a 20-year power purchase agreement (PPA) with Northern States Power Company (NSP), a subsidiary of Xcel Energy (NYSE: XEL).
(USD 1 = EUR 0.808)