Pattern Energy Group Inc. has closed on its commitment to acquire 172MW of owned interest in the 218 MW Panhandle 1 wind project in Texas, from Pattern Development for a total cash consideration of US$124.4 million.
The balance of the project has been acquired from Pattern Development by three institutional tax equity investors.
Mike Garland, President and CEO of Pattern Energy, stated:
This acquisition adds 16% to our operating capacity and marks our third project to successfully reach completion this year. 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.
Panhandle 1 is located in Carson County, Texas, and consists of 118 General Electric 1.85 MW wind turbines. The facility is utilizing 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).
Approximately 77% of the expected output of Panhandle 1 is contracted under a 13-year energy price hedge, with an A-/Baa2 credit-rated affiliate of Citibank, with the balance sold at ERCOT's spot market prices.