The two Arizona projects are under long-term output contract with Salt River Project (SRP)
Image: Avangrid Renewables to sell stake in Arizona wind and solar projects. Photo: courtesy of Free-Photos/Pixabay
US-based Avangrid Renewables has agreed to sell a 50% stake in wind and solar projects in Arizona to Axium Infrastructure for a total combined amount of $112m (£89.95m).
The two Arizona projects, which are under long-term output contract with Salt River Project (SRP), include the 65.1MW Dry Lake II wind farm project and the 20MW Copper Crossing solar project, both developed, owned and operated by Avangrid Renewables.
Located in Snowflake, the Dry Lake II wind farm facility features 31 Suzlon S88 wind turbines. The wind park had begun commercial operations in 2010.
On the other hand, the Copper Crossing solar project, featuring 66,000 photovoltaic modules, is built in Florence. The facility had entered into commercial operation in 2011.
Avangrid Renewables president and CEO Laura Beane said: “An experienced asset manager like Axium Infrastructure is a natural partner as we continually work to optimize our renewables assets and pipeline through strategic sales, alliances, or partnerships, and create value and new opportunities for the business.
“We look forward to expanding this partnership with future development opportunities.”
The transfer of control of Dry Lake II is likely to occur this year
The transaction, which is expected to be completed by the fourth quarter of 2019, is subject to satisfactory customary closing conditions and approval by the Federal Energy Regulatory Commission.
The transfer of control of Dry Lake II is likely to occur this year while the transfer of control of Copper Crossing is expected to happen in 2020.
Axium Infrastructure US president Thierry Vanda said: “Axium is thrilled to be partnering with Avangrid Renewables, a leading renewable energy company in the United States, in acquiring a 50% interest in these quality solar and wind assets in Arizona.
“We look forward to building on this transaction and growing our partnership in the coming years.”
Avangrid Renewables, is a subsidiary of energy company AVANGRID with nearly $33bn (£26.4bn) in assets and operations in 24 states of the US.