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Clearway Energy acquires 413 MW of onshore wind assets in the US for $415 million

image credit: clearwayenergy.com
Mohit Kaul's picture
Founder Enerdatics

Building Enerdatics. Leadership experience in a high growth SaaS company and secured a successful exit. A natural leader who cares about creating value for all stakeholders. Extensive experience...

  • Member since 2022
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  • Jun 29, 2022
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The US-based company will acquire the assets from Capistrano Wind Partners, a portfolio company of Australia-based AMP Capital. The purchase price comprises a cash consideration of $255 million and the assumption of ~$160 million of non-recourse debt. The acquired assets are five utility-scale wind farms in Texas, Nebraska, and Wyoming, which began commercial operations during 2008-2012 and sell power to investment-grade counterparties under power purchase agreements (PPAs). Average remaining contract duration is 10 years. The operations & maintenance (O&M) and asset management services for the projects will continue to be provided by subsidiaries of Clearway Energy’s parent company, Clearway Group. 

The Clearway Group will pay $10 million to Clearway Energy to help finance the acquisition in exchange for the exclusive right to design, construct, and repower the Capistrano projects. Clearway Energy estimates its total long-term corporate capital commitment to acquire the assets to reach ~$110-130 million, which it expects to fund with cash on hand. The transaction is estimated to yield incremental annual levered asset cash available for distribution (CAFD) of $12-14 million, on a five-year average, beginning January 1, 2023. The deal will close in 2022.

Clearway Energy, a GIP portfolio firm, has over 5 GW net of installed wind and solar installations. TotalEnergies owns 21% of the company through a recent $4.6 billion deal with GIP and Clearway Energy's parent. The US is the top market for private equity firms and PE-backed buyers to acquire renewable producing assets and enterprises, accounting for more than 20% of PE deal activity globally in the last 5 years. The activity has mostly been concentrated on solar assets, driven by dramatic declines in costs of equipment, installation and co-located storage. The wind sector, on the other hand, has lagged behind the solar sector significantly, with today’s agreement marking just the fourth major U-based PE acquisition in the sector in 2022. Enerdatics anticipates solar to continue dominating deal activity, with wind seeing larger, high-value deals for operational, contracted assets.

 

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