Pattern Energy Group has completed the acquisition of 172MW of owned interest in the 218MW Panhandle 1 wind project from its former parent company, Pattern Energy Group LP (Pattern Development), for a total cash consideration of $124.4m.
The balance of the operational project has been bought by three institutional tax equity investors from Pattern Development.
Located in Carson County, Texas, Panhandle 1 features 118 General Electric 1.85MW wind turbines and Texas’ new competitive renewable energy zone (CREZ) transmission infrastructure, which connects to the state’s main power grid operator, Electric Reliability Council of Texas (ERCOT).
Pattern Energy president and CEO Mike Garland said the acquisition adds 16% to its operating capacity and marks Pattern Energy’s third project to successfully reach completion in 2014.
“It is the second project we have acquired from Pattern Development that has gone into operation since our IPO – again demonstrating the value of that strategic partnership – and we anticipate their extensive pipeline will create more opportunities that will help us meet or exceed our growth plans,” Garland said.
The project’s output of approximately 77% will be transferred to with an A-/Baa2 credit-rated affiliate of Citibank, as part of a 13-year energy price hedge, while the remaining will be sold at ERCOT’s spot market prices.
The Panhandle 1 project, which created more than 275 construction jobs and 11 permanent operations and maintenance positions, is expected to generate clean, renewable electricity for up to 60,000 Texas homes annually without using any of the region’s limited water supplies, according to statistics from the US Energy Information Agency.
