Pattern Energy announced it has acquired the 200 MW Logan’s Gap Wind project in Texas from Pattern Development for a total cash funding commitment of approximately US$113 million.
Upon completion, Pattern Energy will have an owned interest of 164 MW and three institutional tax equity investors will acquire the balance.
The acquisition expands total owned capacity of Pattern Energy to 1,636 MW upon completion. Of this, nearly 600 MW was added from Pattern Development over the past 12 months.
Located in Comanche County, Texas, Logan’s Gap wind project consists of 87 Siemens 2.3 MW wind turbines. This project is the company’s fourth wind project in Texas, serving three different regions throughout the state.
Logan’s Gap Wind project has signed long-term contracts for 75 percent of the expected output, including a10-year power purchase agreement with Walmart for 58 percent. Further, 17 percent of the expected output will be sold under a 13-year fixed price agreement with a A-/Baa2-rated financial institution. The remaining 25 percent of expected output will be sold at ERCOT spot market prices.
Commenting on this development, Mike Garland, CEO of Pattern Energy, said Pattern Development has more than 30 projects in development at any given time, providing a broad and deep resource for our continued growth and the potential of accelerated drop downs.
Pattern Energy has rights of first offer to Pattern Development’s project development pipeline, which includes more than 3,000 MW.
Projects are added to Pattern Energy’s list of identified Right of First Offer (ROFO) projects when they reach identified milestones, such as when a project has executed a power purchase agreement.
“Our outlook for future acquisitions is better than we have ever seen, as Pattern Development has recently added more projects to its development pipeline through third-party acquisitions. We look forward to announcing new opportunities that will be added to our ROFO list in the near future,” Garland added.
Logan’s Gap Wind is being built in Comanche County, Texas, and consists of 87 Siemens 2.3 MW wind turbines. Located near the Dallas-Fort Worth area, Logan’s Gap Wind will be the Company’s fourth wind project in Texas, serving three different regions throughout the state.