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April 1, 2015

TerraForm Power to acquire 521MW of wind power projects from Atlantic Power

TerraForm Power has completed its acquisition of five power projects totalling 521MW of wind energy from Atlantic Power for approximately $350m.

By Shreosree Banerjee

TerraForm Power has completed its acquisition of five power projects totalling 521MW of wind energy from Atlantic Power for approximately $350m.

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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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According to the long-term power purchase agreement (PPA), Atlantic Power Transmission, a direct Atlantic Power subsidiary, will transfer the assets to TerraForm AP Acquisition, an indirect subsidiary of TerraForm.

The five projects under consideration are located across the US states of Idaho and Oklahoma.

The 124.5MW Goshen North (12.5%), 183MW Idaho Wind (27.6%), 120MW Meadow Creek (100%), 80MW Rockland wind farm (50%) and 298MW Canadian Hills (99%) facilities are the assets to be divested.

"The UK continues to be a priority strategic growth area for Interstate."

It is expected that the acquisition will be completed by the second quarter of 2015, however it still awaits regulatory approvals and customary closing conditions.

Atlantic Power president and chief executive officer James Moore said: "Together with our board, we considered a wide range of options for asset divestitures over the last six months as well as options for refinancing the balance sheet without asset sales.

"In addition to completing the wind transaction, we are focused on executing the other elements of our business plan.

"We are evaluating the best use of proceeds to optimise our capital structure for the benefit of shareholders, continuing to implement significant reductions in our corporate general and administrative expenses beyond the level already targeted for 2015, and making ongoing investments in our fleet at attractive cash-on-cash returns."

TerraForm has secured a financing of approximately $515m to support

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Free Report
img

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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