Canadian utility Capital Power has signed a sale and purchase agreement to acquire renewables developer Element Power U.S. for $114 million.
The Edmonton-based generator announced it expects to acquire the Portland, Oregon-based subsidiary of European developer Element Power by the end of the year, with the purchase price including $52 million of commitments in project financing debt.
Few details of Element Power US’ renewables portfolio were included in the announcement although it includes a 15 MW solar plant in North Carolina among four solar schemes as well as the 50 MW Macho Springs wind farm in New Mexico, part of a ten-strong wind portfolio.
The renewables generation capacity acquired by the utility, however, is presumably dwarfed by the 1.06 GW output that is expected to come from Capital Power’s planned Genesee 4&5 natural-gas fired generating plant west of Alberta, which formed the headline news of yesterday’s corporate update.
The utility announced it intends to start construction of the fossil fuel plant in mid 2015 with construction set to be complete by early 2018.