🔍 Enerdatics estimates the enterprise value of this transaction at ~$260mn, representing a deal multiple of ~$0.85mn/MW.
Asset details
🌬️ The transaction involves the acquisition of four wind projects in the PJM region from Vitol and Oppidum Green Energy. Three wind farms with a combined capacity of 167 MW will be repowered within the next three years, while the fourth is expected to be repowered by the end of this year.
📈 Three projects have a 4-year PPA with Shell-owned power retailer Inspire Clean Energy, signed in 2023. The repowering is estimated to increase the nameplate capacity of the wind farms by as much as 25%.
Deal valuation
💡 Enerdatics' analysis is based on precedent deals like Ecofin's acquisition of Whirlwind wind farm ($0.81mn/MW) and considers the repowering horizon, which we believe exerts upward price pressure on the valuation.
🔎Meanwhile, utility PPA-backed wind farms with over 10 years of remaining contracted life have been transacted at higher multiples. Examples include Clearway's 2021 buy of a 413 MW portfolio in Texas at $1mn/MW, and Innergex's 2022 acquisition of a 37.75% stake in Idaho wind farms at $0.91mn/MW.