San Francisco-based independent power producer Pattern Energy Group Inc. is entering the Japanese renewable energy market.
The company has announced a series of transactions highlighted by agreements to acquire 206 MW of owned capacity in projects from Pattern Energy Group LP (Pattern Development 1.0) and Green Power Investments (GPI), as well as an additional investment in Pattern Energy Group 2 LP (Pattern Development 2.0) to fund the acquisition of a controlling interest in GPI, a Japanese renewable developer, from Pattern Development 1.0.
“These investments represent Pattern Energy’s entry into the exciting Japanese renewables market by acquiring a portfolio of projects and by making an additional investment in Pattern Development 2.0 to fund a well-established operating and development management team, GPI,” comments Mike Garland, CEO of Pattern Energy. “Japan is one of the largest electrical grids in the world and has one of the most robust renewable energy markets.”
The 206 MW portfolio consists of two operating solar projects (Futtsu and Kanagi), one operating wind project (Otsuki) and two in-construction wind projects (Ohorayama and Tsugaru).
The cash purchase price for the 84 MW portfolio of Futtsu, Kanagi, Otsuki and Ohorayama is approximately $131.5 million, and the cash purchase price for the 122 MW Tsugaru wind project is approximately $194.0 million.
The transactions also include a $27 million investment in Pattern Development 2.0’s acquisition of Pattern Development 1.0’s controlling interest in GPI. All funding required for the transactions will be provided from available liquidity at Pattern Energy.
The deals increase Pattern Energy’s operating portfolio to nearly 4 GW of gross capacity – with more than 2.9 GW of owned capacity – across 25 projects, including the projects it has agreed to acquire.
Beyond the U.S., Pattern Energy’s portfolio of wind and solar facilities also spans Canada and Chile.