Algonquin completes acquisition of 400 MW wind power portfolio from Gamesa

Algonquin Power (APUC) has successfully acquired the remaining 40% of a 400 MW wind power portfolio in the U.S. from Gamesa.

Algonquin Power & Utilities Corp (APUC) , a company that owns and operates a diversified portfolio of regulated and non-regulated utilities in North America, announced on Monday that it has acquired the remaining 40% of the 400 MW wind power portfolio (the projects) from Gamesa Wind US LLC in the US, for a total consideration of about USD115m.

APUC owned a 60% controlling interest in the projects and was the majority owner and manager of these since 2012. These interests were originally acquired through a newly formed partnership whose original members included APCo, Gamesa and certain tax equity investors, earlier when the company achieved commercial operation. The 400 MW wind portfolio consists of three facilities, Minonk (200MW), Senate (150MW), and Sandy Ridge (50MW) in Illinois, Texas and Pennsylvania, respectively.

Accordingly, there are no additional ongoing management or administrative costs expected to be incurred by the company and Gamesa will continue to provide operations, warranty and maintenance services for the wind turbines and balance of plant facilities, under 20 year contracts.

Most of the projects’ energy is sold under fixed price power sales contracts such as long term hedge agreements with a remaining weighted average life of 11 years; ancillary services such as capacity and renewable energy credits are contracted into the energy markets where the facilities are located, the company added.