RWE has agreed a deal to sell a 51% stake in four Texan wind farms with a combined capacity of 861MW to an Algonquin Power & Utilities Corp subsidiary.
The stake in the four Texas wind farms amounts to 439MW and was sold for $600 million – around $1.4 million/MW, RWE confirmed.
The sell-off comes as part of the company’s “capital rotation program”, it explained, meaning it will use proceeds of the divestment to fund future projects.
Two of the projects are already operating, while the others are still under construction.
The four onshore wind farms are Stella, Cranell as well as East and West Raymond – set in the coastal region of south Texas – and with a total installed capacity of 861MW.
The 201MW Stella Stella (201MW) OnshoreKenedy County, Texas, USA, North America Click to see full details project was commissioned in December 2018 and the 220MW Cranell Cranell (220MW) OnshoreRefugio County, Texas, USA, North America Click to see full details wind farm in September this year.
Meanwhile, the 200MW East Raymond East Raymond (200MW) OnshoreWillacy, Hidalgo and Cameron Counties, Texas, USA, North America Click to see full details and 240MW West Raymond West Raymond (240MW) OnshoreWillacy, Hidalgo and Cameron Counties, Texas, USA, North America Click to see full details wind farms are under construction and are expected to be commissioned by the end of this year and the end of Q1 2021 respectively.
RWE will continue to operate all four wind farms, with the deal expected to close in Q1 2021, subject to the commissioning of the projects under construction.
The sell-off does not change RWE’s financial guidance, with the firm expecting to expand its renewables portfolio to more than 13GW capacity by the end of 2022, investing €5 billion net.
With partners, gross investment volume could hit €9 billion, while RWE’s current project development pipeline is more than 22GW.
The firm has 25 onshore wind farms in operation in the US, almost 1GW under construction and it is also building the Hickory Park solar project with storage.