PGGM Infrastructure Fund (PGGM) has signed purchase and sale agreements with EDF Renewables to acquire 50% stake in wind and solar projects in the US totaling 588MW.
Image: Wind Farm project. Photo: Courtesy of Jim Frech/FreeImages.com
As per the agreement, PGGM will acquire stake in 200MW Red Pine Wind, 154MW Rock Falls Wind project, Switch Station 1 Solar and Switch Station 2 Solar, totaling 234MW. The transaction is subject to approval from regulatory authorities and customary closing conditions.
EDF Renewables stated that it will remain involved in the projects as co-owner offering management services and provider of operations and management services.
EDF Renewables strategy executive vice president Raphael Declercq said: “This portfolio of wind and solar projects provides an attractive investment opportunity in the US renewable energy sector, well suited for a large pension fund.
“We are pleased to forge a new business relationship with PGGM and expect to follow with another transaction. We are confident that our expertise as a developer and operator complements PGGM’s renewable energy investment strategy.”
The Red Pine Wind project was acquired by EDF Renewables in 2015, while the project was still in its early stages from Infinity Wind. The wind farm is powered by 100 of Vestas’ 2MW turbines and is spread across in an area roughly 34,000 acres.
Rock Falls wind project is located in Kay and Grant Counties, Oklahoma is powered by Siemens wind turbines. The wind farm started operations last December. This is the second project for EDF Renewables in the state.
The 234 MW Switch Solar project started operations last December and is located in Clark County, Nevada. It is situated on 1,600 acres of land managed by US Bureau of Land Management (BLM) in the Dry Lake Solar Energy Zone (SEZ).
Electricity from the Switch solar plant will be sold under a 20 year PPA to subsidiaries of Nevada Energy. The project was acquired by EDF Renewables last July from First Solar.
PGGM infrastructure head Erik van de Brake said: “This transaction enables PGGM to work closely with EDF Renewables, known for its great expertise in developing and operating renewable energy projects.
“The addition of this portfolio to our investments in renewable energy is part of PGGM’s push to build up a €20bn. impact investment portfolio across all asset classes for our client PFZW, the Dutch pension fund for the healthcare sector.
“With the impact investment portfolio PFZW aims to make a positive impact on climate, water scarcity, food security and healthcare.’’