Denmark’s Ørsted A/S (CPH:ORSTED) has wrapped up a deal with private equity firm Energy Capital Partners to offload a 50% stake in an 862-MW onshore wind and solar portfolio in the US.
The divestment includes stakes in the Lincoln Land, Plum Creek and Willow Creek wind farms and the Muscle Shoals solar park, Ørsted said on Friday. The Danish renewables major has pocketed around USD 410 million (EUR 420.8m) from the transaction.
The deal was carried out in line with Ørsted’s strategy to farm down stakes in operational wind and solar assets and invest the capital in new projects. The company’s goal is to reach 50 GW of installed renewable energy capacity by 2030, expanding its portfolio from the current 5 GW in operation and under construction.
All assets are operated under power purchase agreements (PPAs) covering their output, or a portion of it. Specific details about each plant are given in the table.
Asset name |
Capacity (MW) |
Location |
Commissioning |
Power off-taker |
Plum Creek Wind |
230 |
Nebraska |
June 2020 |
Vail Resorts, JM Smucker, Avery Dennison Corp |
Willow Creek Wind |
103 |
S Dakota |
Sept 2020 |
North Iowa Municipal Electric Cooperative Association |
Lincoln Land Wind |
302 |
Illinois |
Nov 2021 |
Meta Platforms (Facebook), McDonald's |
Muscle Shoals Solar |
227 |
Alabama |
Sept 2021 |
Meta Platforms (Facebook), TVA |
Energy Capital Partners has funded the acquisition through a fund-of-one partnership with US insurer Teachers Insurance and Annuity Association of America (TIAA) and debt from Mitsubishi UFJ Financial Group (MUFG).
Ørsted said it will be the managing member of the partnership and will continue to provide asset management services for the quartet.
(USD 1.0 = EUR 1.026)
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