RWE has signed an agreement with a subsidiary of Algonquin Power & Utilities Corp to sell a 51% stake in four RWE onshore wind facilities in Texas (USA), accounting for a total pro-rata installed capacity of 439MW.
The total consideration corresponds to an enterprise value of around USD 600 million (for the 51% stake), which translates to an implied enterprise value multiple of USD 1.4 million/MW. Two projects are in operation and two under construction.
The four onshore wind farms for which the parties agreed to enter a partnership are Stella, Cranell as well as East and West Raymond. With a total installed capacity of 861 MW, they are located in the coastal region of south Texas. Stella Wind Farm (201 MW) was commissioned in December 2018 and Cranell Wind Farm (220 MW) in September this year. Raymond East (200 MW) and West (240 MW) wind farms are currently under construction. They are expected to be commissioned by the end of this year and in the first quarter of 2021 respectively. Following the closing of the transaction, RWE will continue to operate all four wind farms.
