WEC Energy acquires 80% stake in Coyote Ridge windfarm

9 January 2019 (Last Updated January 9th, 2019 14:08)

US-based WEC Energy Group has bought an 80% stake in Coyote Ridge windfarm from Avangrid Renewables.

WEC Energy acquires 80% stake in Coyote Ridge windfarm
Amazon to invest in renewable energy projects in Ireland and Virginia Credit: Zbynek Burival on Unsplash.

US-based WEC Energy Group has bought an 80% stake in Coyote Ridge windfarm from Avangrid Renewables.

WEC Energy Group paid $145m for the project interest and all related tax benefits.

Located in Brookings County, South Dakota, Coyote Ridge windfarm is currently under development and will be operated by Avangrid Renewables once it begins its operations later this year.

Avangrid Renewables president and CEO Laura Beane said: “Working with a trusted partner like WEC Energy Group aligns with our strategy to maximise the value of our robust renewables pipeline.

“This opportunity enables us to work together to drive economic development and deliver clean energy solutions to meet market demand.”

Avangrid Renewables anticipates that the windfarm could contribute more than $20m over its lifetime through combined land lease payments to landowners, in addition to local and state taxes.

“This opportunity enables us to work together to drive economic development and deliver clean energy solutions to meet market demand.”

Featuring 39 GE wind turbines, Coyote Ridge windfarm will have the capacity to generate 97MW of energy.

The project currently has a long-term offtake agreement with Google Energy for 100% of energy produced.

WEC Energy Group chairman and CEO Gale Klappa said: “We continue to see promising opportunities to deploy capital in renewable energy assets that will serve strong, growing companies for years to come.”

Under the new tax rules, the WEC Energy Group investment is expected to be eligible for 100% bonus depreciation.

The deal is reported to have gained all the necessary approvals from regulatory authorities.