Abu Dhabi's Masdar makes big move in US wind and solar with EDF deal
Middle East renewables group takes 50% share in 1.6GW renewables portfolio in major US expansion
Abu Dhabi’s Masdar has acquired a 50% stake in an eight-project, almost 1.6GW storage, solar and wind portfolio in three US states from EDF Renewables, marking a major expansion of its footprint in the world’s second-largest renewable energy market.
The deal highlights continued strong interest among foreign investors in operational US solar and wind projects, despite the sharp economic downturn induced by coronavirus impacts.
In 2019, 19 domestic and foreign investors acquired 7.4GW of operating wind capacity across 95 project phases.
EDF and Masdar did not make public financial terms of the transaction, which is expected to close in the fourth quarter.
The portfolio includes three wind farms totaling 815MW: Coyote (243MW) and Las Majadas (273MW) in Texas and Milligan I (300MW) in Nebraska. They are under construction and targeted for commercial operations in the fourth quarter.
Also involved are five solar PV projects in California totaling 689MW with two having 75MW of lithium-ion battery energy storage capacity.
They include Desert Harvest 1 and 2 totaling 213MW and 35MW of battery storage, and the 173 MW Maverick 1 and 136MW Maverick 4 solar PV projects. All four are located in Riverside County and will also begin commercial operations in the fourth quarter.
Big Beau, a fifth array in the portfolio, is 166MW with 40MW battery energy storage. It is located in Kern County and will reach commercial operation in 2021.
Power from the portfolio wind and solar projects will be sold under long-term contracts to a variety of offtakers, including utilities, hedge providers and community choice aggregators (CCAs).
Masdar CEO Mohamed Jameel Al Ramahi said the US “offers considerable scope for further growth and diversification of our renewable energy portfolio.” Masdar made its first entry into the US market last year, acquiring a 50% interest in two wind farms in Texas and New Mexico.
“This deal writes a new chapter of cooperation between our two companies focused on the North American market,” said Tristan Grimbert, CEO of EDF Renewables North America.
On 1 January, EDF Renewables ranked seventh in wind capacity ownership in the US with 2.87GW behind NextEra Energy Resources, Berkshire Hathaway Energy, Avangrid Renewables, EDP Renewables, Enel Green Power and RWE Renewables.
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