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July 2, 2021

EDPR sells stake in US wind portfolio to Greencoat Capital

The Bright Stalk and Harvest Ridge wind farms have 405MW of collective capacity.

By Umesh Ellichipuram

Spanish energy company EDP Renováveis (EDPR) has concluded the sale of a 68% equity stake in a 405MW wind portfolio in the US.

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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The stake has been divested to funds managed by UK-based renewable energy investor Greencoat Capital .

The two wind facilities included in the deal are Bright Stalk, with 205MW of capacity, and Harvest Ridge, with 200MW of capacity. Both facilities are located in Illinois.

Bright Stalk began operations in 2019, while Harvest Ridge has been in operation since last year.

The clean energy generated by the Harvest Ridge facility is supplied to Wabash Valley Power Alliance (WVPA), as well as Walmart and an unnamed private off-taker, under long-term power purchase agreements.

In April, EDPR agreed to divest a 55% equity stake in the two wind farms to Greencoat Capital .

When the sale and purchase agreement was signed, EDPR said that the transaction could be increased to an 80% stake before the deal was closed.

In a statement, EDPR said: “The total consideration of the transaction corresponds to a full enterprise value of $720m, which translates into an enterprise value of $1.8m for each megawatt.

“This transaction will contribute with €500m ($591m) of asset rotation proceeds and is within the context of the €8bn ($9.4bn) asset rotation programme for 2021-25 announced on EDPR’s Capital Markets Day.

“This will allow EDPR to accelerate value creation while recycling capital to reinvest in accretive growth.”

Earlier this week, EDPR partnered with gas company Reganosa to build clean energy generation and storage projects in Spain. The projects will be located in As Pontes and seven surrounding municipalities.

The two companies intend to build wind, energy storage, hydrogen and hydroelectric generation projects and make Ferrolterra a ‘capital of green energy’.

The initiative will involve a €780m ($926m) investment in the region and is expected to create almost 400 permanent operation and maintenance jobs.

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Free Report
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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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