E.On sells interest in $650 million value wind power portfolio to Enbridge
The two wind farms are located in areas with favorable wind regimes and combined, provide enough clean power for more than 120,000 households
E.On, a major investor-owned power and gas company and Enbridge Inc., a North American leader in energy delivery, today announced a deal whereby E.On has agreed to sell an 80 percent interest in a portfolio of two wind farms in the US to Enbridge. The agreed enterprise value for the portfolio is around $650 million.
The 203 MW Magic Valley 1 wind farm located near Harligen, Texas and the 202 MW Wildcat 1 wind farm near Elwood, Indiana are operational and came into service in 2012. The two wind farms are located in areas with favorable wind regimes and combined, provide enough clean power for more than 120,000 households.
The deal is consistent with E.On’s ‘build and sell’ strategic approach. The proposed transaction partly monetizes capital expenditure spent and the value created during development and construction while maintaining a minority equity position. E.On will retain a 20 percent interest and remain the operator of the wind farms, demonstrating its ongoing commitment to the projects and the North American market. E.On currently operates over 2,700 MW of renewable energy capacity in the US and is a leader in the American wind power industry.
Enbridge has invested about $3 billion in renewable energy assets over the past five years. The acquisition of these two wind farms brings the total generating capacity of the green power projects in which Enbridge has interests to more than 2,200 MW and helps position the company to double its previous capacity of 1,800 MW by 2017.
The projects also further help Enbridge meet its Neutral Footprint commitment to generating a kilowatt hour of renewable energy for every additional kilowatt of energy consumed by its liquids pipelines business, a goal the company is on track to meet by 2015.
Completion of the transaction is subject to regulatory approvals.