Clearway Energy, Inc. Signs Binding Agreement to Acquire an Additional 35% Interest in the 290 MW Agua Caliente Solar Project
PRINCETON, N.J., Nov. 20, 2020 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) (“Company”) today announced that it has entered into an agreement to acquire a 35% interest in the Agua
Caliente solar project. Agua Caliente is a 290 MW utility-scale solar project located in Dateland, Arizona in which Clearway currently owns a 16% equity interest. The project has a 25-year PPA with
PG&E, with approximately 19 years remaining under the agreement. The Company will acquire the additional 35% interest in Agua Caliente for $202 million, and this acquisition is expected to
provide incremental annual asset CAFD on a five-year average basis of $20 million prior to corporate financing.
"The additional interest in Agua Caliente is a great addition to the Company’s portfolio,” said Christopher Sotos, Clearway Energy, Inc.’s President and Chief Executive Officer. “With this investment, Clearway adds additional technology and cash flow diversification with an increase in solar ownership, improved portfolio overall weighted average contract duration, and growth at attractive economics.”
Subject to customary closing conditions, the Company expects to close the transaction in the first quarter of 2021. The Company expects to fund the acquisition with existing liquidity and, subject to market conditions, new corporate financings. Following the close of the transaction Clearway will own a 51% equity interest in Agua Caliente. As a result, the Company will consolidate the project in its financial statements, which includes the project’s $735 million of non-recourse project debt1. The project’s non-recourse debt is fully amortizing and matures in 2037.
About Clearway Energy, Inc.
Clearway Energy, Inc. is a leading publicly-traded energy infrastructure investor focused on modern, sustainable and long-term contracted assets across North America. Clearway Energy’s environmentally-sound asset portfolio includes over 7,000 megawatts of wind, solar and natural gas-fired power generation facilities, as well as district energy systems. Through this diversified and contracted portfolio, Clearway Energy endeavors to provide its investors with stable and growing dividend income. Clearway Energy’s Class C and Class A common stock are traded on the New York Stock Exchange under the symbols CWEN and CWEN.A, respectively. Clearway Energy, Inc. is sponsored by its controlling investor Global Infrastructure Partners III (GIP), an independent infrastructure fund manager that invests in infrastructure and businesses in both OECD and select emerging market countries, through GIP’s portfolio company, Clearway Energy Group.