Greencoat Capital expands US position with second acquisition in 2021

The transaction marks the second investment in the US by funds managed by Greencoat, a leading global renewables investment manager, with over $8 billion of assets under management.  Greencoat’s “secure income” investment model aims to provide investors with predictable, stable income on a long term, buy and hold basis.  In January 2021, Greencoat announced an investment in an 861MW US wind portfolio in joint venture with RWE and Algonquin Power & Utilities Corp.

Further US wind and solar investments are expected as Greencoat builds on its leading position in European renewables by expanding its activities in the US.  Greencoat believes that the fast growing US renewables market provides interesting investment opportunities, with a range of returns available from differing offtake contracting strategies.  Many of the leading developers in the US are parties well known to Greencoat from its existing activities in Europe.

The Portfolio

The Portfolio comprises the Bright Stalk and Harvest Ridge wind farms in Illinois.  Bright Stalk entered into commercial operation in December 2019 with an installed capacity of 205MW in the PJM power market.  Harvest Ridge entered into commercial operation in July 2020 with an installed capacity of 200MW in the MISO power market.  Vestas will continue to provide turbine operation and maintenance services under 15 year agreements.  EDPR will remain as minority owner with responsibility for the day-to-day manager of the wind farms.

The transaction is expected to close in June 2021, with the potential to upsize to 80% subject to agreement between the parties.

Greencoat is delighted to partner with EDPR, the fourth largest wind and solar energy producer globally with 12.2GW of operating capacity as of December 2020.