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EDP Renewables to sell stake in U.S. wind portfolio, for $720M

EDP Renewables Greencoat

EDP Renewables North America, a subsidiary of Spain-based world leader in renewable energy production, EDP Renováveis, signed an agreement to sell its 55% equity stake in a U.S. wind portfolio to investment firm Greencoat Capital.

Firstly, the sale is in line with the 8 billion euros Asset Rotation Program announced in EDPR’s Capital Markets Day in February; which allows the company to fast-track its value creation while recycling capital to reinvest in accretive growth.

Secondly, the wind portfolio to be sold has a total capacity of 405 megawatts; it is comprised of two wind farms; specifically, the Bright Stalk, with 205 MW of power; and also, the Harvest Ridge, with 200 MW of power; both located in Illinois.

Thirdly, both wind farms are currently operational; in fact, Bright Stalk began operations in 2019; while Harvest Ridge began operations in 2020.

Moreover, as said above, the complete transaction has an estimated enterprise value of $720 million, equivalent to $1,8 million per megawatt.

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EDP Renewables

EDP Renewables expanding U.S. pressence

In addition, the transaction could be increased to an 80% equity stake between the signing of the agreement and the actual closing; as it is still subject to regulatory approvals and further agreement between the companies.

On the other hand, EDP Renewables, in early March, announced that through its wholly-owned subsidiary in North America LLC (EDPR NA), it acquired a majority interest in C2 Omega LLC. In fact, this acquisition concentrates mainly on the distributed solar platform of C2 Energy Capital LLC (C2).

Furthermore, this platform has an operating capacity of 89 MW; with a near-term pipeline of more than 150 MW, across 200 sites in 16 states. The closing follows the initial acquisition announcement made on January 18, 2021. Besides, it creates a new business unit named EDPR NA Distributed Generation LLC (EDPR NA DG).

Finally, the company also has presence in Indiana, Wisconsin, Oklahoma and Ohio, where its currently building four wind farms and one solar farm. the portfolio has a combined capacity of over 560MW.

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