US-based independent infrastructure investor Clearway Energy has agreed to acquire an additional 35% stake in the 290MW Agua Caliente solar project in Dateland, Arizona for $202m.
Clearway Energy currently owns a 16% equity interest in the utility-scale solar project, which has a 25-year power purchase agreement (PPA) with PG&E. About 19 years are remaining as part of the PPA.
Upon closing of the transaction, Clearway Energy will own a 51% equity interest in Agua Caliente solar project.
The acquisition is expected to provide incremental annual asset CAFD on a five-year average basis of $20m before corporate financing.
Situated 65 miles east of the city of Yuma, Arizona, the Agua Caliente solar project will generate enough energy to power 100,000 homes, displacing 220,000 tonnes of CO2 per annum.
The project is owned by NRG Energy and BHE Renewables and was developed by First Solar.
Clearway Energy president and CEO, 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.”
The transaction, subject to customary closing conditions, is expected to close in the first quarter of next year.
Clearway expects to fund the acquisition with existing liquidity and, subject to market conditions, new corporate financings.
The company will consolidate the project in its financial statements, which includes the project’s $735m of non-recourse project debt.
The non-recourse debt of the project is fully amortising and will mature in 2037.
