Boralex US Solar CIA LLC, a wholly owned subsidiary of Boralex Inc., has entered into binding agreements with Centaurus Renewable Energy LLC (CRE) and other investors to acquire controlling interests in seven solar systems in the United States for a purchase price of $ 216.5 million Dollar.
CRE and other investors retain certain non-controlling interests in the assets, resulting in a net installed capacity of 118 MW AC for Boralex.
The operated solar systems with a total installed capacity of 209 MW alternating current are located in Five Points, Huron, Kettleman City, Lancaster and Newman, California; Chambers County, Ala .; and Indianapolis, Ind., were operational between 2014 and 2017. The assets benefit from long-term power purchase agreements (PPAs) with the regents of the University of California, Alabama Power Co., PG&E, Edison, Southern California, the City of Palo Alto, and Indianapolis Power & Light expire between 2029 and 2046, with the remaining weighted Average of the PPAs is more than 21.5 years.
“The acquisition of Centaurus’ stake in seven solar plants marks Boralex’s entry into the California, Alabama and Indiana markets,” said Patrick Lemaire, President and CEO of Boralex. “The acquisition of shares in these high-quality assets, which are secured by long-term contracts, is perfectly aligned with the growth and diversification orientations of our strategic plan 2023.”
The transaction is currently expected to close on or before December 31st, provided customary closing conditions are met, including receipt of FERC approval for the Lafayette and Five Points assets. The Lafayette Asset PPA includes a right of first refusal in favor of Alabama Power, which allows Alabama Power to acquire the CRE stake in Lafayette within 60 days of notification of a binding offer from a third party by matching the proposed purchase price. Boralex does not know whether or not Alabama Power intends to exercise this right. The acquisition of the shares in that particular asset is therefore subject to the waiver or termination of that right.
Click here for a full listing and details of Boralex’s recently acquired shares.
Photo: Boralex ‘landing page