Clearway Energy announced that it has signed a binding agreement to acquire the remaining 50% stake in its 530MW Utah solar portfolio for $335m.
The portfolio is made up of seven utility-scale solar farms built in Utah, which has been in commercial operations since 2016.
The projects include Escalante Solar I in Helper, Escalante Solar II in Milforad, Enterprise Solar in Providence, Escalante Solar III in Delta, Granite Mountain West, Granite Mountain East, and Iron Springs in Cedar City.
All the assets are underpinned by 20-year power purchase agreements (PPAs) with PacifiCorp that have nearly 15 years left under the agreements.
Clearway Energy president and CEO 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.”
The company plans to finance the acquisition partly with new non-recourse project level debt of $210m-$240m, which will result in an expected net corporate capital commitment of around $95m-$125m.
Clearway Energy said that its existing stake of 50% in the Utah solar portfolio is currently being accounted for as an equity method investment. After the close of the announced deal, the company will consolidate the portfolio in its financial statements.
The deal, which is subject to the meeting of customary closing conditions, is expected to be closed in the fourth quarter this year.
The renewable energy company has more than 4.7GW net installed capacity in wind and solar generation. Earlier this year, the company acquired the 264MW Mt. Storm wind project in West Virginia from Castleton Commodities International.
