TransAlta Renewables acquires U.S. wind projects
TransAlta Renewables Inc. announced today that it has entered into an arrangement to acquire two construction-ready projects in the northeast United States.
The wind development projects consist of:
• a 90 MW project located in Pennsylvania which has a 15-year Power Purchase Agreement (PPA); and
• a 29 MW projected located in New Hampshire with two, 20-year PPAs.
All three counterparties have S&P credit ratings of A+ or better.
Total cost of the two projects is estimated to be US$240 million, of which approximately 70 per cent will be funded in 2018 and the remainder in 2019. The commercial operation date for both projects is expected during the second half of 2019.
“This acquisition demonstrates our commitment to grow and diversify our cash flows through the addition of long-term contracted assets with high quality counterparties,” said President John Kousinioris, “and expands our presence in the United States.”
TransAlta Renewables will fund the acquisition and construction costs using its existing liquidity and tax equity.
The acquisition of the projects is subject to a number of closing conditions, including customary regulatory approvals and, in the case of the New Hampshire project, the receipt of a favourable regulatory determination in relation to the permitting of the project.