E.On has announced a new agreement to sell an 80 percent interest in two US wind farm portfolios to Enbridge.
They have finalized the deal at a value of around $650 million.
The two wind farms are 203 MW Magic Valley 1 wind farm in Harligen, Texas and the 202 MW Wildcat 1 wind farm in Indiana which are operational since 2012.
The two wind farms together provide enough clean power for more than 120,000 households.
The deal is according to E.On’s builds and sells policy. This transaction partly monetizes capital expenditure spent and the value created during development and construction while maintaining a minority equity position.
E.On will continue to be the operator of the wind farms, retaining a 20 percent interest, with its commitment to the projects and the North American market.
Currently, E.On operates around 2,700 MW of renewable energy capacity in the US and has invested $3 billion in renewable energy over the past five years.
By acquiring these two wind farms, Enbridge will attain its total generating capacity of green power projects to more than 2,200 MW, taking the company to double its previous capacity of 1,800 MW by 2017.
Moreover, Enbridge can meet its Neutral Footprint commitment to generating a kilowatt hour of renewable energy for every additional kilowatt of energy consumed by its liquids pipelines business, a target set to meet by 2015.
Sabeena Wahid
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