Avangrid Renewables, a subsidiary of Avangrid, has agreed to sell 85% of its stake in the 155MW Tatanka Ridge wind farm in South Dakota, to WEC Energy Group for about $235m.
As part of the transaction, WEC Energy Group will also acquire substantially all of the tax benefits in the project.
Located in Deuel County, South Dakota, the wind farm is under construction and sits on about 18,000 acres of land. To be powered by 56 turbines, the wind farm is expected to begin operations by early next year.
Avangrid Renewables president and CEO Alejandro de Hoz said: “Partnering with WEC Energy Group on another new wind project enables us to capitalize on our broad development pipeline of renewable projects around the country.
“With a renewables development pipeline approaching 19 gigawatts, we have the flexibility to pursue different avenues to maximize the value of our wind and solar assets, and lead a transformational change in the energy sector by meeting customers’ and partners’ appetite for clean energy solutions.”
The wind farm has two long-term offtake agreements for 100% of the generated power
Under long-term offtake agreements, power generated from the Tatanka Ridge wind farm will be sold to a multinational investment grade company and an electric cooperative serving utilities across multiple states.
The transaction is subject to regulatory approvals and customer closing conditions.
WEC Energy Group executive chairman Gale Klappa said “This is the latest in a series of investments that fit exceptionally well with our strategy of deploying capital in renewable energy assets that will serve strong, vibrant customers for years to come.”
In December 2018, Avangrid Renewables had sold 80% stake in its 97MW Coyote Ridge wind farm in Brookings County in the state to WEC Energy Group.
The Coyote Ridge wind farm entered into commercial operations this year.
