TransAlta to buy 71 MW of US solar, wind parks

Canada’s TransAlta Corp (TSE:TA) said today it will acquire 71 MW of long-term contracted solar and wind parks in the US for a total of USD 75.8 million (EUR 68.3m).

More specifically, TransAlta is buying four ground-mounted and four rooftop solar projects in Massachusetts with a combined capacity of 21 MW, as well as a 50-MW wind farm in Minnesota from an affiliate of Rockland Capital LLC. The plants have power purchase agreements (PPA), whose terms range from 20 to 30 years.

“The acquisition marks our first solar project and aligns with our strategy of growing our renewables platform, diversifying our portfolio, and increasing the pipeline of assets for potential future drop-downs into TransAlta Renewables” said Dawn Farrell, president and CEO of TransAlta.

In addition to paying the purchase price, the company will also assume certain tax equity obligations and USD 41.8 million of non-recourse project debt. The transaction is seen to close by the end of September.

(USD 1.0 = EUR 0.901)

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