Avangrid Sells Stake in South Dakota Wind Farm
South Dakota Ag Connection - 01/10/2019
Avangrid Renewables, a subsidiary of AVANGRID, Inc. has announced the sale of the ownership interest in the Coyote Ridge Wind Farm, now under construction in Brookings County to WEC Energy Group of Milwaukee.
WEC Energy Group has acquired 80% ownership interest in Avangrid Renewables' Coyote Ridge Wind Farm. The wind farm will feature 39 GE wind turbines for a total capacity of 97 MW.
Under the terms of the transaction, which closed in December, WEC Energy Group acquired an 80% ownership interest in the project and substantially all of the tax benefits for $145 million.
"Working with a trusted partner like WEC Energy Group aligns with our strategy to maximize the value of our robust renewables pipeline," said Laura Beane, president, and CEO of Avangrid Renewables. "This opportunity enables us to work together to drive economic development and deliver clean energy solutions to meet market demand."
Avangrid Renewables is building the wind farm and will provide operations and maintenance services when it reaches commercial operation, which is expected before the end of the year. The wind farm will feature 39 GE wind turbines for a total capacity of 97 MW and has a long-term offtake agreement with Google Energy for 100% of the energy produced.
Avangrid Renewables anticipates that the project will contribute more than $20 million over its lifetime in combined land lease payments to local landowners and local and state tax payments.