February 27 (Renewables Now) - US wind power company Pattern Energy Group Inc (NASDAQ:PEGI) has agreed to buy a 206-MW portfolio of wind and solar power parks in Japan, thus marking its entry into one of the “most robust” renewable energy markets globally.
The acquisition price for a total of five assets is USD 325.5 million in cash, Pattern Energy said in a press release on Monday.
More specifically, Pattern Energy will take possession of two operational solar parks, one wind farm and two more wind plants that are currently being built. These are the 29-MW Futtsu photovoltaic (PV) park in Chiba prefecture and the 10-MW Kanagi solar plant in Shimane prefecture, both of which have been generating power since 2016 and are operating under 20-year power purchase agreement (PPAs) with local utilities. The 12-MW Otsuki wind park in Kochi prefecture was brought live back in 2006 and is selling its output to Shikoku Electric Power Co (TYO:9507) under a 20-year contract.
The under-construction assets are the 33-MW Ohorayama wind park in Kochi prefecture, seen to go live in March, as well as the 122-MW Tsugaru wind complex in Aomori prefecture that is scheduled for completion in the middle of 2020.
The 206-MW deal will see Pattern Energy buy the assets from development vehicle Pattern Energy Group LP, also known as Pattern Development 1.0, and its joint venture partner Tokyo-based Green Power Investment Corp (GPI).
The acquisition is expected to be completed in March.
In addition, the US power group will make a USD-27-million (EUR 21.9m) investment in its other development vehicle Pattern Development 2.0, also known as Pattern Energy Group 2 LP, through which the latter will take Pattern Development 1.0's controlling interest in renewables developer GPI, whose project development pipeline totals 2,400 MW.
Overall, the acquisition will boost the company’s operating portfolio to almost 4,000 MW gross, of which 2,900 MW is operated for own account.
(USD 1.0 = EUR 0.811)