TransAlta Renewables Inc. has entered into an arrangement to acquire two construction-ready projects in the Northeast United States.
The wind development projects consist of: (i) a 90 MW project located in Pennsylvania which has a 15-year Power Purchase Agreement ("PPA") and (ii) a 29 MW projected located in New Hampshire with two 20-year PPAs. All three counterparties have S&P credit ratings of A+ or better.
Total cost of the two projects is estimated to be US$240 million, of which approximately 70% will be funded in 2018 and the remainder in 2019. The commercial operation date for both projects is expected during the second half of 2019.
"This acquisition demonstrates our commitment to grow and diversify our cash flows through the addition of long-term contracted assets with high quality counterparties, and expands our presence in the United States," said President John Kousinioris.
TransAlta Renewables will fund the acquisition and construction costs using its existing liquidity and tax equity.
Accretive to cash available for distribution per share.
Aligns with TransAlta's and TransAlta Renewables' strategy of acquiring contracted renewable power generation assets that provide stable cash flow through long-term power purchase agreements with creditworthy counterparties.
Delivers growth that creates long-term shareholder value.
Provides additional geographic and asset diversification.
The acquisition of the projects is subject to a number of closing conditions, including customary regulatory approvals and, in the case of the New Hampshire project, the receipt of a favourable regulatory determination in relation to the permitting of the project.