The wind portfolio consists of the Bright Stalk and Harvest Ridge wind farms in Illinois
EDP Renewables has agreed with UK-based Greencoat Capital to sell a 55% cash equity stake in its 405MW Illinois wind portfolio in the US.
The acquisition marks the second investment in the country for funds managed by Greencoat, a global renewables investment manager, with more than $8bn of assets under management.
The wind portfolio includes the Bright Stalk and Harvest Ridge wind farms in Illinois.
With an installed capacity of 205MW in the PJM power market, Bright Stalk was brought into commercial operations in December 2019.
Brought into commercial operations in July 2020, Harvest Ridge has an installed capacity of 200MW in the MISO power market.
Greencoat Capital stated: “Further US wind and solar investments are expected as Greencoat builds on its leading position in European renewables by expanding its activities in the US.
“Greencoat believes that the fast growing US renewables market provides interesting investment opportunities, with a range of returns available from differing offtake contracting strategies.
“Many of the leading developers in the US are parties well known to Greencoat from its existing activities in Europe.”
For the wind farms, Vestas is expected to continue providing turbine operation and maintenance services under 15-year agreements.
EDPR will continue as minority owner of the wind facilities, and is responsible for the daily management of the wind farms.
Anticipated to close in June 2021, the transaction has the potential to upsize to 80% subject to agreement between the parties.
Three of the wind farms included in the transaction are currently in operations.