Pattern Energy Acquires 324MW Broadview Wind Facilities
- May 04, 2017
Pattern Energy Group Inc. acquired from Pattern Energy Group LP (Pattern Development 1.0) interests in the 324-megawatt Broadview Wind power facilities and associated independent 35-mile 345-kilovolt Western Interconnect transmission line. The independent power company paid $269 million; $215 million in cash, funded from available corporate liquidity, and an assumed project loan of $54 million secured by Western Interconnect. Broadview, located 30 miles north of Clovis, N.M., began commercial operations in late March.
Pattern Energy acquired from Pattern Development 1.0 an 84 percent initial cash flow interest in Broadview, and a 99 percent ownership interest in Western Connect. Institutional equity investors have acquired from Pattern Development 1.0 a 16 percent initial cash flow interest in Broadview, as well as a 99 percent initial taxable income allocation from the wind farm. Following the deal, based on its initial cash flow share, Pattern Energy retains an owned interest of 272 megawatts in Broadview.
The Western Interconnect loan was originally secured at the time of the agreement to acquire Broadview in June 2016. The interest on the debt is 90 percent, swapped over the 19-year amortization term, while the debt has a maturity of 10 years.
Starting in 2018, Broadview will begin receiving not only the pay-as-you-go (PAYGO) contributions from its tax equity investors, but also certain New Mexico production tax credits. Pattern Energy expects the CADF contribution to be $18 million in 2018 and to increase by approximately $2.5 million per year thereafter through 2022.
Broadview’s equipment includes 141 Siemens 2.3-megawatt wind turbines capable of generating 324 megawatts of energy, which is enough to power around 180,000 California homes. The power facility is limited to 297 megawatts of injection capacity at Broadview’s transmission interconnection point. The wind farm entered two 20-year power purchase agreements with Southern California Edison for sale of 100 percent of the output.
“This extraordinary project brings inexpensive renewable power from eastern New Mexico, one of the highest wind areas in the west, using dedicated transmission capacity from several transmission systems into California. Broadview’s production complements production from California’s domestic renewable resources helping California transition to a carbon-free, low-cost, renewable grid,” Mike Garland, president & CEO of Pattern Energy, said in prepared remarks. “We are especially excited to bring this project on line because Pattern Development is actively developing several significant opportunities in New Mexico and the southwest U.S. as part of the region’s increasing demand for low-cost, renewable energy. These new opportunities will be subject to our ROFO as part of our relationship with Pattern Development.”
Image courtesy of Siemens