Avangrid Renewables, a subsidiary of Orange-based utility company Avangrid, has sold its ownership interest in the Tatanka Ridge Wind Farm in South Dakota.
Under the terms of the deal signed this month, WEC Energy Group of Milwaukee is acquiring an 85 percent ownership interest and related tax benefits for approximately $235 million.
The deal is still subject to regulatory approvals before it can be finalized.
The transaction is the latest between the two, as Avangrid Renewables in 2018 sold an 80 percent interest in the Coyote Ridge Wind Farm, also in South Dakota, to WEC Energy Group.
Alejandro de Hoz, president and CEO of Avangrid Renewables, said partnering with WEC Energy Group on another new wind project enables the company to capitalize on its “broad development pipeline of renewable projects around the country.”
“With a renewables development pipeline approaching 19 gigawatts, we have the flexibility to pursue different avenues to maximize the value of our wind and solar assets,” de Hoz said in an announcement.
Avangrid Renewables is building the 56-wind turbine, 155-megawatt project, which is expected to reach commercial operation by early 2021. Avangrid Renewables owns and operates renewable energy generation facilities around the country.
The wind farm is on 18,000 acres of vegetable and cattle farms, leased from more than 100 landowners. Between land lease payments and taxes, the wind farm would provide approximately $1.7 million of economic benefits annually, according to Avangrid.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
