Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) (“Company”) today announced that it has entered into an agreement to acquire the remaining 50% equity interest in the Utah Solar Portfolio that it does not currently own for $335 million1.
The Utah Solar Portfolio consists of seven utility-scale solar farms located in Utah representing 530 MW of capacity that achieved commercial operations in 2016. The assets within the portfolio sell power subject to 20-year PPAs with PacifiCorp that have approximately 15 years remaining under the agreements.
"The acquisition of the remaining 50% interest in the Utah Solar Portfolio will continue the Company’s successful track record of executing on third party transactions to meet our long-term growth objectives,” said Christopher Sotos, Clearway Energy, Inc.’s President and Chief Executive Officer. “With this transaction, Clearway will invest in new growth at attractive economics, increase its long-term contracted cash flow from utility-scale solar, and further diversify its portfolio on a regional basis.”
Subject to customary closing conditions, the Company expects to close the transaction in the fourth quarter of 2021. The Company expects to finance the acquisition in part with new non-recourse project level debt of between $210 to $240 million resulting in an expected net corporate capital commitment of approximately $95 to $125 million. Based on current expected terms and conditions of the new non-recourse project financing, the acquisition is expected to provide incremental annual levered asset CAFD on a five-year average basis of approximately $9 to $11 million prior to corporate financing beginning January 1, 2022.