Clearway Energy is to acquire the remaining 50% equity interest in the Utah Solar Portfolio that it does not currently own for $335m (€285m).
The Utah Solar Portfolio consists of seven utility-scale solar farms located in Utah representing 530MW of capacity that achieved commercial operations in 2016.
The assets within the portfolio sell power subject to 20-year PPAs with PacifiCorp that have approximately 15 years remaining under the agreements.
Clearway Energy president and chief executive Christopher Sotos said: “The acquisition of the remaining 50% interest in the Utah Solar Portfolio will continue the Company’s successful track record of executing on third party transactions to meet our long-term growth objectives.
“With this transaction, Clearway will invest in new growth at attractive economics, increase its long-term contracted cash flow from utility-scale solar, and further diversify its portfolio on a regional basis.”
Subject to customary closing conditions, the Company expects to close the transaction in the fourth quarter of 2021.
Clearway expects to finance the acquisition in part with new non-recourse project level debt of between $210m to $240m resulting in an expected net corporate capital commitment of approximately $95m to $125m.
Based on current expected terms and conditions of the new non-recourse project financing, the acquisition is expected to provide incremental annual levered asset CAFD on a five-year average basis of approximately $9m to $11m prior to corporate financing beginning 1 January 2022.
The Company’s existing 50% interest in the Utah Solar Portfolio is accounted for as an equity method investment.
Following the close of the acquisition of the remaining 50% interest in the portfolio, the Company will consolidate the Utah Solar Portfolio in its financial statements.