Calgary-based power generator grows renewable portfolio with latest buy
CALGARY—TransAlta Corporation has announced the acquisition of 71 megawatts of long-term contracted renewable generation assets from an affiliate of Rockland Capital for a purchase price of US$75.8 million. The deal also includes the assumption of certain tax equity obligations and US$ 41.8 million of non-recourse project debt.
The assets acquired include 21 megawatts of solar projects located in Massachusetts and a 50 megawatt wind facility in Minnesota. The company said the assets are contracted under long-term power purchase agreements ranging from 20 to 30 years with several high quality counterparties. The acquisition is subject to customary regulatory approvals and is expected to close by the end of September 2015.
“The acquisition marks our first solar project and aligns with our strategy of growing our renewables platform, diversifying our portfolio, and increasing the pipeline of assets for potential future drop-downs into TransAlta Renewables” Dawn Farrell, president and CEO of TransAlta, said. “The expansion into new geographic markets and technologies further enhances our position as a leader in renewable energy and provides potential for future opportunities in the U.S solar and wind space.”
The company noted that the solar facilities, consisting of four ground mounted projects and four roof-top projects, are all long-term contracted with solid cash flows from multiple counterparties, and are qualified under phase one of the Massachusetts Solar Renewable Energy Credit program.
The wind facility, which uses 32 GE 1.5 MW XLE turbines, has been operational since March 2014 and is contracted under three long-term power purchase agreements until 2034 with high quality counterparties.
This latest acquisition, as well as TransAlta’s recently announced Suncor transaction will expand the company’s renewable portfolio and diversify its assets across different technologies and geographic locations.