Exelon Corporation plans to acquire John Deere Renewables, which will add 735MW of renewable energy to Exelon’s generation portfolio.
The $860m deal has a provision for another $40m upon the commencement of construction of an additional 230MW in advanced development projects.
Under the agreement, Exelon will acquire John Deere Renewables’ 735MW of installed, operating wind capacity, spread across 36 projects in eight states.
About 75% of the operating portfolio is already sold under long-term power purchase arrangements.
Exelon also has the opportunity to pursue 1,468MW of new wind projects in various stages of development, including the 230MW project in advanced stages of development.
Exelon chairman and CEO John W. Rowe said that they expect to see increasing demand for clean, efficient wind power at a national level, and in the 29 states that already have a renewable energy standard.
“This acquisition gives Exelon a strong position in the wind generation business, which adds diversity to our generation fleet and provides more options for future growth,” Rowe said.
John Deere will become part of the Exelon Power division of Exelon Generation, which already includes over 1,000MW of owned and contracted renewable power including hydroelectricity, wind, landfill gas and solar.
Exelon will close the transaction with John Deere Renewables in the fourth quarter of 2010.