RWE to sell 51% of 861-MW Texas wind portfolio to Algonquin

Germany’s RWE AG (ETR:RWE) has agreed to offload 51% stakes in 861 MW of onshore wind parks in Texas to Canadian utility Algonquin Power & Utilities Corp (TSE:AQN).

A unit of Algonquin Power will take the majority interest in four of RWE’s wind parks, providing it with ownership to a total pro-rata installed capacity of 439 MW. The Canadian firm will pay around USD 600 million (EUR 493.9m), the seller said on Monday.

The sale concerns two operational wind farms and two projects under construction, all located in the coastal region of south Texas. While the 201-MW Stella and 220-MW Cranell parks were brought live in December 2018 and September 2020, respectively, the 200-MW Raymond East and 240-MW Raymond West plants are due to be switched on by end-2020 and in the first quarter of next year.

RWE explained that the sale is part of its capital rotation programme. Funds from it will be earmarked for financing the company’s expansion in the renewable energy business. The German group noted that the sale will not affect its financial guidance and its goal to grow its renewables portfolio to over 13 GW by end-2022.

Following the deal, RWE will continue to operate the wind farms.

The completion of the transaction is subject to the commissioning of the under-construction plants and is seen to occur in the first quarter of 2021.

(USD 1.0 = EUR 0.823)

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