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September 3, 2021

TransAlta Renewables to acquire solar portfolio in North Carolina

The portfolio includes 20 solar photovoltaic facilities commissioned between November 2019 and this May.

By Hasini Devarasetti

Canadian hydroelectric power company TransAlta Renewables has agreed to acquire a solar power portfolio in North Carolina, US, with a 122MW capacity.

The portfolio will be acquired for $96.65m from a fund managed by Copenhagen Infrastructure Partners.

TransAlta Renewables will acquire 20 operational solar photovoltaic facilities, which were commissioned between November 2019 and May 2021.

The solar assets range in capacity from 3.2MW to 6.7MW and are expected to generate around 195,000MWh a year in total.

The facilities have long-term power purchase agreements (PPAs) in place with Duke Energy subsidiaries, with an average remaining term of 12 years.

Under the PPAs, Duke Energy receives the renewable power, capacity and environmental attributes of each solar facility.

The portfolio is estimated to generate average annual cash available for distribution of around $7m.

The average annual earnings before interest, tax, depreciation and amortisation (EBITDA) generated by the solar assets are estimated at around $9m.

TransAlta Renewables president Todd Stack said: “This purchase marks an important and significant expansion of our solar footprint in the United States and is a natural fit for TransAlta Renewables given our focus on diversified, highly-contracted cash flows from strong counterparties.

“The acquisition further strengthens our expertise in solar energy and adds a new, high-quality customer in a region where we see significant opportunities for solar growth.

“We are excited to continue along our path of expanding our position as a market leader in clean renewable electricity.”

TransAlta Renewables said that the portfolio’s purchase price is subject to working capital adjustments and the assumption of existing tax equity obligations.

The company will pay for the acquisition using its existing liquidity.

The deal is expected to close in the fourth quarter of this year subject to customary regulatory approvals.

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