US-based WEC Energy has agreed to acquire an 85% stake in the 155MW Tatanka Ridge Wind Farm in South Dakota for $235m.
In addition to the stake, WEC Energy Group will acquire all the related tax benefits.
Avangrid Renewables manages the the Tatanka Ridge wind facility project, currently under construction in Deuel County.
Avangrid Renewables president and CEO Alejandro de Hoz said: “Partnering with WEC Energy Group on another new wind project enables us to capitalize on our broad development pipeline of renewable projects around the country.
“With a renewables development pipeline approaching 19GW, we have the flexibility to pursue different avenues to maximize the value of our wind and solar assets, and lead a transformational change in the energy sector by meeting customers’ and partners’ appetite for clean energy solutions.”
Spread across nearly 18,000 acres of farms and cattle ranches, the wind facility will use 56 wind turbines. Avangrid Renewables has leased land from more than 100 landowners for the project. The companies expect operations to begin by early 2021.
In its statement, WEC said power purchase agreements already cover all energy generated by the wind facility. This will go to a “multinational investment-grade company” and “an established electric cooperative that serves utilities in multiple states”.
Completion of the deal is subject to all necessary regulatory approvals.
WEC Energy’s investment in the Tatanka Ridge wind farms facility is also expected to get 100% bonus depreciation.
WEC Energy Group executive chairman Gale Klappa said: “This is the latest in a series of investments that fit exceptionally well with our strategy of deploying capital in renewable energy assets that will serve strong, vibrant customers for years to come.”
In February this year, WEC Energy Group reached an agreement to increase its stake in three wind farms in the US Midwest with an investment of $118m.
The deal included the 250MW Blooming Grove wind farm in Illinois, the 300MW Thunderhead Wind Energy Center and the 200MW Upstream Wind Energy Center, both located in Nebraska.