in News Departments > Projects & Contracts
print the content item

Algonquin Power & Utilities Corp. (APUC) has successfully acquired the remaining 40% of a 400 MW wind power portfolio in the U.S. from Gamesa Wind US LLC for total consideration of approximately $115 million.

Prior to the deal, APUC owned a 60% controlling interest in the projects, which were initially acquired through a newly formed partnership whose original members included APCo, Gamesa and certain tax equity investors. In December 2013, APUC announced its agreement to purchase the remaining 40% interest.

The 400 MW wind portfolio consists of three facilities: the 200 MW Minonk wind farm in Illinois, 150 MW Senate wind farm in Texas and 50 MW Sandy Ridge wind farm in Pennsylvania.

APUC has been the majority owner and manager of the projects since commercial operation was achieved in 2012; therefore, the company says it expects no additional ongoing management or administrative costs. Gamesa will continue to provide operations, warranty and maintenance services for the wind turbines and balance-of-plant facilities under 20-year contracts.

"With little additional overhead costs anticipated, we expect investment in the full ownership of this portfolio of high-quality wind assets to contribute accretive, low-risk earnings and cash flow to APUC," comments Ian Robertson, CEO of APUC. "We are very pleased to be the sole owner of these assets, and we see tremendous opportunity to grow our portfolio by leveraging the expertise we have gained in the U.S. power markets in which these wind facilities operate."

Substantially all of the energy from the projects is sold under fixed-price power sales contracts, including long-term hedge agreements with a remaining weighted average life of 11 years. Ancillary services, including capacity and renewable energy credits, are contracted into the energy markets in which the facilities are located.




Trachte Inc._id1770
Latest Top Stories

Six Key Takeaways From The IRS' Start Of Construction Guidance: What You Need To Know

The IRS recently issued guidance to wind developers to further spell out what "start of construction" means. Will you be covered?


Eagle Take Permits For Wind Farms - Will They Fly?

Now that the U.S. Fish and Wildlife Service has issued the first permit allowing the legal take of eagles, can wind developers expect more certainty in the agency's application process?


Despite 2013 Challenges, U.S. Wind Power Reaches All-Time Low Price

In a new report, the U.S. Department of Energy details the highs and lows of the country's wind industry last year, and the agency maintains that the U.S. sector remains strong.


Mexico On Pace To Set New Renewables Investment Record

A new report says the country has spent $1.3 billion on clean energy in the first half of 2014 and could end up seeing a record year. Furthermore, wind power is slated for significant growth in the region.


IRS Issues More PTC Guidance, Easing Some Wind Industry Concerns

The Internal Revenue Service (IRS) addresses how much work is needed on a wind farm to satisfy production tax credit (PTC) eligibility.

Renewable NRG_id1934
Canwea_id1984
Tower Conference_id1965