California-based independent power company Pattern Energy announced this week that it had acquired 206 megawatts worth of Japanese renewable energy projects and has made a move to acquire controlling interest of Japanese renewable energy developer Green Power Investments.
Pattern Energy Group announced on Monday that it had completed a series of transactions including the acquisition of a 206 megawatt (MW) portfolio of renewable energy projects consisting of two operating solar projects, one operating wind project, and two wind projects currently under construction. Pattern Energy is purchasing the portfolio from its own development company and Japanese renewable energy developer Green Power Investments (GPI).
The portfolio specifically consists of two operating solar projects, the 29 MW Futtsu Solar project located just outside Tokyo in the Chiba prefecture, and the 10 MW Kanagi Solar project located in the Shimane prefecture; one operating wind project, the 12 MW Otsuki Wind project located in the Kochi prefecture; and two wind projects currently under construction — the 33 MW Ohorayama Wind project located on the island of Shikoku, and the 122 MW Tsugaru Wind project located in the Aomori prefecture.
The cash purchase price for the 122 MW Tsugaru Wind project is approximately $194 million, while the cash purchase price for the remaining 84 MW portfolio is listed at approximately $131.5 million.
In addition to the portfolio acquisitions, Pattern Energy also committed to funding the acquisition of a controlling interest in GPI (Pattern Development 2.0), worth an estimated $27 million.
“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,” said 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. Under the Feed-in Tariff power contracts, these initial projects average ¥25,340 per MWh (or the equivalent of $230/MWh at an ¥110/USD exchange rate). GPI’s development pipeline consists of 2.4 GW of projects, including 600 MW of wind capacity which have qualified for FiT contracts. Additionally, we believe that as we grow our portfolio, we will be able to enhance our economics over time with the use of local, low-cost capital.”