Pattern Energy Group Inc. closed on its commitment to acquire 172 MW of owned interest in the 218 MW Panhandle 1 wind power project from Pattern Energy Group LP for a total cash consideration of $124.4 million. The balance of the project has been acquired from Pattern Development by three institutional tax equity investors.
Acquisition highlights:
· Full 218 MW has completed construction and is fully operational
· Portfolio now comprises nine operating wind facilities and two construction projects
· Second completed acquisition since the initial public offering (IPO) in a series of anticipated transactions with Pattern Development
· Project uses General Electric 1.85 MW turbines and is secured with a long-term contract for 77 percent of its output
· Located in one of the strongest wind resources in the country
· Cash purchase price represents a 9-10x multiple on run-rate CAFD contribution from the project
Panhandle 1 is located in Carson County, Texas, and consists of 118 General Electric 1.85 MW wind turbines. The facility is using Texas’ new Competitive Renewable Energy Zone (CREZ) transmission infrastructure, which connects to the state’s main power grid operator, Electric Reliability Council of Texas (ERCOT).
The Panhandle 1 project created more than 275 construction jobs and 11 permanent operations and maintenance positions. According to statistics from the U.S. Energy Information Agency, it will generate clean, renewable electricity for up to 60,000 Texas homes each year without using any of the region’s limited water supplies.
