Malaga, currently owned by the Kings River Conservation District, is a 96 MW, natural gas-fired power plant, which began commercial operations in 2005. The plant historically operated under a power purchase agreement with the California Department of Water Resources, but under Carlyle ownership it will sell energy and capacity into the open market.
The acquisition is being done in conjunction with Carlyle portfolio company Cogentrix Energy Power Management, LLC and increases Carlyle’s power generation assets to more than 4,400 MW, including six plants totaling more than 400 MWs in California.
The acquisition is subject to typical closing conditions. The terms of the agreement were not disclosed.
Matt O’Connor, Carlyle Managing Director and Co-Head of Carlyle Power Partners, stataed:
“Malaga represents an important addition to our portfolio of efficient, flexible generation facilities in California. Assets like Malaga represent important resources to support the expansion of intermittent renewable generation in the state, providing reliable electricity when renewable generation is not available.”
In September 2013, Carlyle funds acquired five natural gas-fired peaking generation assets totaling 320 MW in California, where increases in the amount of power generated by renewable resources are creating unique opportunities in the power sector.
Cogentrix, a Carlyle portfolio company, is a developer, operator and manager of independent power plants (IPP) in North America. Founded in 1983, Cogentrix has been directly responsible for the development, engineering, construction, operation and management of a portfolio totaling 47 fossil and renewable power facilities with a combined generating capability of over 12,800 gross megawatts.
Equity capital for this transaction will come from Carlyle Power Opportunities Capital Partners L.P.