Polaris (NYSE:PII) Renewable Energy Inc. (TSX:PIF), a Canadian company specializing in renewable energy projects, has finalized the acquisition of a controlling interest in the Punta Lima Wind Farm in Puerto Rico, previously owned by Santander (BME:SAN) Bank N.A. The 26-megawatt wind farm, located in the Municipality of Naguabo, is operational and holds a 20-year power purchase agreement with the Puerto Rico Electric Power Authority set to expire in March 2044.
The transaction, which involved a $20 million equity contribution from Polaris and was subject to standard closing conditions, including local regulatory approvals, enhances Polaris’s asset portfolio by adding wind power to its existing mix of geothermal, hydroelectric, and solar operations. Marc Murnaghan, President and CEO of Polaris, expressed optimism about the acquisition, citing near-term shareholder returns and the potential for growth through energy storage solutions and further strategic opportunities on the island.
The Punta Lima Wind Farm, which began production in October 2012, was incapacitated by Hurricane Maria in 2017 but was subsequently rebuilt by Santander. The installation of new wind turbines was completed in 2022, with commercial operations resuming in March 2024. Nuno Andrade of Santander Corporate & Investment Banking praised the transaction, emphasizing the bank’s commitment to supporting clean energy initiatives in Puerto Rico.
Polaris Renewable Energy’s expansion into Puerto Rico aligns with the island’s future energy needs and the company’s strategy to diversify its renewable energy sources. The financial details of the transaction, including the tax-equity structure, were advised solely by Santander Corporate & Investment Banking.
