Clearway Energy is to acquire a 35% interest in the 290MW Agua Caliente solar farm in the US state of Arizona, raising its stake in the project to 51%.
The transaction is priced at $202m with the seller unnamed.
Subject to customary closing conditions, the company expects to close the transaction in the first quarter of 2021.
It expects to fund the acquisition with existing liquidity and, subject to market conditions, new corporate financings.
Agua Caliente has a 25-year power purchase agreement with PG&E, with approximately 19 years remaining under the agreement.
Clearway will consolidate the project in its financial statements as a result of taking the majority interest.
This will include the project’s $735m of non-recourse project debt, which is fully amortising and matures in 2037.
Clearway Energy chief executive Christopher Sotos said: “The additional interest in Agua Caliente is a great addition to the Company’s portfolio,.
“With this investment, Clearway adds additional technology and cash flow diversification with an increase in solar ownership, improved portfolio overall weighted average contract duration, and growth at attractive economics.”