RWE to sell 51% stake in four Texan wind farms to Algonquin for $600m
German energy company RWE has agreed to sell a 51% stake in four of its onshore wind farms in Texas with a combined capacity of 861MW to a subsidiary of Canadian electric utility Algonquin Power & Utilities for nearly $600 million.
The wind farms involved in the deal are the operating 201MW Stella Wind Farm and 220MW Cranell Wind Farm, and the 200MW Raymond East Wind Farm and the 240MW Raymond West Wind Farm, that are currently under construction.
While the Stella Wind Farm began operations in December 2018, the Cranell Wind Farm has been operating since September 2020.
On the other hand, the Raymond East Wind Farm is scheduled to be operational by the end of this year, while the Raymond West Wind Farm is slated to be commissioned in Q1 2021.
All the four onshore wind farms are situated in the coastal region of southern Texas. RWE will continue to operate all the wind farms even after the transaction is closed.
The German energy company is divesting the Texan wind farms as part of its capital rotation program. It will use the sale proceeds for expanding its renewable energy business.
By the end of 2022, the German renewables company plans to expand its renewables portfolio to more than 13GW capacity through an investment of €5 billion.
The deal, which is subject to the commissioning of the Raymond East and West wind farms, is expected to be wrapped up in Q1 2021.