Terra-Gen is actively developing wind energy projects, with an emphasis on the west and mid-west regions of the United States. Terra-Gen have a significant development effort underway in Tehachapi, California involving up to 3100 MW’s of wind power, with the first 1500 MW’s committed to Southern California Edison under a long-term PPA. Terra-Gen is also working on greenfield wind energy projects in a variety of other states, as well as acquisitions of wind development efforts from smaller developers.
Global Infrastructure Partners Announces Strategic Investment in Terra-Gen Power
Global Infrastructure Partners (GIP), an independent $5.64 billion infrastructure investment fund, announced today that it has reached agreement to acquire up to a 40% convertible preferred interest in Terra-Gen Power Holdings, LLC (Terra-Gen) from ArcLight Capital Partners, LLC (ArcLight). Financial details of the investment were not disclosed.
Terra-Gen is a leading US renewable power generation company that owns or operates over 800 megawatts (MW) of renewable power facilities, including geothermal, wind and solar projects across a broad area of the United States. Terra-Gen also has over 5,000 MW of renewable energy projects under development. Following completion of this transaction, which is expected by year-end, ArcLight and GIP will be partners in driving the continuing growth of Terra-Gen.
Adebayo Ogunlesi, Chairman and Managing Partner of GIP, commented: “We are very pleased to be working with ArcLight and the outstanding Terra-Gen management team to help meet the growing demand for clean, renewable energy in the United States. Their capabilities are an ideal complement to GIP’s operational strengths and our expertise in the power sector.”
Jonathan Bram, the GIP Partner leading the transaction, added: “This investment represents an excellent opportunity for GIP. In Terra-Gen, we have a solid portfolio of operating renewable projects combined with a unique growth platform that includes each of the three most attractive clean energy technologies.”
Credit Suisse acted as financial advisor to GIP. Global Infrastructure Partners (GIP) is an independent fund that invests worldwide in infrastructure assets in both OECD and select emerging market countries. GIP targets investments in single assets, and portfolios of assets and companies, in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment and waste management. GIP has offices in New York, London, Hong Kong and Sydney and portfolio company operations headquarters in Stamford, Connecticut.
Terra-Gen Power is a renewable energy company focused on geothermal, wind power and solar generation. Terra-Gen Power owns 831 MW (net equity) in twenty-one operating renewable energy projects across the Western United States. Wholly owned subsidiaries, Terra-Gen Operating Company and Coso Operating Company, operate and manage most of the projects.
The company primarily sells the output of the renewable energy projects to load serving entities under long-term power purchase agreements. Terra-Gen Power plans to expand operations in renewable generation through a combination of acquisitions of operating projects, development of new projects and partnering on mid and late stage development opportunities.