The stake, which is equivalent to 207MW capacity, will be bought by Greencoat for $160m
UK investor Greencoat has signed an agreement with German energy company RWE to acquire a 24% stake in four onshore wind farms in the US.
Three of the wind farms included in the transaction are currently in operations, while the remaining project is under construction.
The stake, which is equivalent to 207MW capacity, will be bought by Greencoat for $160m.
The transaction is expected to be completed in the first quarter of 2021. Upon completion, RWE will continue to remain as the operator of the wind farms that are located in Texas.
The company plans to use the sale proceeds to fund its growth in the renewable energy business. It aims to expand its renewables portfolio to more than 13GW by the end of 2022, with an investment of €5bn.
RWE stated: “The transaction extends the successful relationship between RWE and Greencoat to the U.S.
“The company holds already shares in RWE UK projects, namely in the offshore wind farms Humber Gateway and Rhyl Flats as well as in the onshore wind farms Little Cheyne Court, Lindhurst and Middlemoor.
“The agreement with Greencoat demonstrates the attractiveness of RWE’s portfolio in North America.”
Four wind farms have a total capacity of 861MW
With a total capacity of 861MW, the four wind farms included in the transaction are Stella, Cranell as well as East and West Raymond.
Commissioned in 2018, the Stella wind farm has a capacity of 201MW, while the 220MW Cranell wind farm and the 200MW East Raymond wind farm commenced operations last year.
Following the completion of the transaction, the assets will be 51% owned by Algonquin Power & Utilities, 25% by RWE and 24% by Greencoat.