Join Our Newsletter - Get important industry news and analysis sent to your inbox – sign up to our e-Newsletter here

RWE agrees to sell stake in four US onshore wind farms to Greencoat

20 Jan 2021 (Last Updated January 20th, 2021 12:40)

German energy developer RWE has agreed to sell stakes in four US wind farms to UK-based renewable investors Greencoat for $160m.

RWE agrees to sell stake in four US onshore wind farms to Greencoat
RWE will continue to operate the four Texan onshore wind farms. Credit: RWE.

German energy developer RWE has agreed to sell stakes in four US wind farms to UK-based renewable investors Greencoat for $160m.

The companies have entered an agreement to transfer a 24% stake in four facilities in Texas, US. The agreed purchase price corresponds to the stake having an enterprise value of around $300m.

The wind farms involved in the deal are the Stella, Cranell, East and West Raymond developments, which have a total installed capacity of 861MW. The facilities lie across the coastal region of south Texas. The transferred stake has a pro-rata installed capacity equivalent to 207MW.

The 201MW Stella Wind Farm was commissioned in December 2018 and the 220MW Cranell Wind Farm entered services in September 2020. East Raymond Wind Farm followed, generating 200MW from December 2020.

The West Raymond Wind Farm has 240MW capacity and is currently under construction. It will start generation in the first quarter of this year.

In December last year, RWE signed an agreement to divest a 51% stake in the four wind farms to a subsidiary of Algonquin Power & Utilities for $600m. The latest deal means Algonquin will hold a 51% stake in the four wind facilities, while Greencoat will hold a 24% stake. RWE will retain the remaining 25% stake.

An RWE spokesperson said the sale forms part of its capital rotation programme. The proceeds will be used to finance further growth.

Upon completion of the deal, which is expected to take place in the first quarter of this year, the company will continue to operate all four wind farms.

Greencoat currently holds shares in RWE UK projects including Humber Gateway and Rhyl Flats offshore wind farms, Little Cheyne Court, Lindhurst and Middlemoor onshore wind farms.

In another development in the US, Dominion Energy announced that one of its subsidiaries has acquired the 150MW AC Hardin solar generating facility from Invenergy, for an undisclosed sum.

The solar power facility recently entered service in Hardin County, Ohio and will supply energy and renewable energy credits to Facebook.