Boralex US Solar CIA LLC has entered into binding agreements with Centaurus Renewable Energy LLC (CRE) and other investors to acquire controlling interests in seven solar plants located in the U.S. for a purchase price of $216.5 million.
CRE and other investors will retain certain non-controlling interests in the assets resulting in total net installed capacity to Boralex of 118 MW AC.
The operating solar plants totaling 209 MW AC of gross installed capacity located in Five Points, Huron, Kettleman City, Lancaster and Newman, Calif.; Chambers County, Ala.; and Indianapolis, Ind., were commissioned between 2014 and 2017. The assets benefit from long-term power purchase agreements (PPAs) with the regents of the University of California, Alabama Power Co., PG&E, Southern California Edison, the city of Palo Alto and Indianapolis Power & Light expiring between 2029 and 2046 with a remaining weighted average of more than 21.5 years on the PPAs.
“The acquisition of Centaurus’ interest in seven solar plants will mark Boralex’s entry into the California, Alabama and Indiana markets,” says Patrick Lemaire, president and CEO of Boralex. “The acquisition of interests in these high-quality assets secured by long term contracts is perfectly aligned with the growth and diversification orientations of our 2023 strategic plan.”
Closing of the transaction is currently anticipated to occur on or before Dec. 31, subject to the satisfaction of usual closing conditions, including receipt of FERC approval for the Lafayette and Five Points assets. The PPA of the Lafayette asset contains a right of first refusal in favor of Alabama Power, pursuant to which the CRE interest in Lafayette can be acquired by Alabama Power within 60 days of being notified of a third-party binding offer by matching the proposed purchase price. Boralex does not know whether Alabama Power intends to exercise such right or not. The acquisition of the interest in this specific asset is therefore subject to the waiver or expiry of this right.
To access a full list and details of Boralex’s recently acquired interests, click here.
Photo: Boralex’s landing page