Global renewables investment manager expands U.S. position


Greencoat Capital recently announced funds managed by Greencoat have agreed to acquire a 55 percent cash equity stake in a 405-MW wind portfolio in Illinois from EDP Renewables.

The transaction marks the second investment in the U.S. by funds managed by Greencoat, a leading global renewables investment manager, with more than $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 861-MW U.S. wind portfolio in joint venture with RWE and Algonquin Power & Utilities Corp.

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

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 205 MW in the PJM power market. Harvest Ridge entered into commercial operation in July 2020 with an installed capacity of 200 MW 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 management of the wind farms.

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

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