DIF Infrastructure III has closed the acquisition of a 49% equity interest in the 30 MW Lone Valley solar plant located in California from EDP Renováveis S.A. (EDPR).
The Lone Valley solar PV power plant achieved COD in the 4 Q14 and sells its output through two 20- year power purchase agreement (PPA).
Based on the transaction price and the institutional equity financing established in September 2014, the enterprise value for 100% of the assets amounts to US$3.1 million/MW, which represent a total value of US$93 million.
With this transaction EDPR extends its asset rotation strategy to the solar business and establishes its fourth asset rotation transaction since May 2014.
Paul Huebener, DIF’s Head of Americas:
“We are pleased to partner with EDPR, a highly respected developer, owner and operator of renewable assets. Lone Valley is an excellent asset for our entry into the United States that will provide long term, stable cash flows as part of DIF’s expanding North American and European portfolio.”
The project is financed with full equity.