Pattern Energy to buy stakes in 520 MW of NA wind

Grady Wind facility in New Mexico. Image by Pattern Development (www.patterndev.com)

October 11 (Renewables Now) - US company Pattern Energy Group Inc (NASDAQ:PEGI) today said it has agreed to acquire over 250 MW of wind capacity in Canada and the US with which it will expand its portfolio to some 4.4 GW.

More specifically, the firm is acquiring stakes in two wind farms which have long-term power purchase agreements (PPAs) in place with investment-grade offtakers. CEO Mike Garland said the assets will be immediately accretive to cash available for distribution (CAFD).

Pattern Energy will pay USD 293 million (EUR 266m) for the assets. A portion of that sum will be secured through a private placement of 10.4 million Series A preferred stock with certain institutional investors.

Details on the two acquisition agreements are available in the table.

Project name Henvey Inlet Wind Grady Wind
Location Georgian Bay, Ontario Curry County, New Mexico
Total capacity 300 MW 220 MW
Turbines Vestas 3.45 MW Siemens Gamesa 2.625 MW
Stake to be acquired 50% equity ownership interest 51% of Class B member interest
Share of capacity 150 MW 101 MW
Seller PEG LP Pattern Development
Consideration CAD 242.4 million USD 99.45 million
Commercial operation start September 2019 Q3 2019
Offtaker Independent Electricity System Operator Sacramento Municipal Utility District
PPA term 20 years 25 years

Pattern said that as part of the first deal, it is also acquiring from PEG LP a CAD-97-million loan outstanding with Nigig Power, expected to be repaid in less than a year. Nigig is the owner of the remaining 50% in the Henvey Inlet wind farm.

The company also said the remaining Class B member interest in the Grady Wind farm will be purchased by the Public Sector Pension Investment Board (PSP Investments).

(USD 1 = EUR 0.91)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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