TerraForm Power, Inc. (TERP), an owner and operator of clean energy power plants, today announced the acquisition of a 9 MW net ownership stake in a portfolio of operating distributed solar power plants from Duke Energy Renewables, a commercial business unit of Duke Energy, the nation's largest electric power holding company.
Combined with the 23 MW net ownership stake in this portfolio previously acquired from Integrys, TerraForm Power's total ownership in these 48 plants represents 32 MW. Terms of the Duke sale were not disclosed.
"We are grateful for the opportunity to work with Duke Energy, one of the country's leading utilities. This acquisition demonstrates TerraForm Power's continued leadership in the distributed generation segment and depth of utility relationships which continue to accelerate our growth trajectory," said Alex Hernandez, Chief Financial Officer of TerraForm Power.
The solar projects are located throughout Arizona, California, Massachusetts, New Jersey and Pennsylvania. The assets were placed into operation between 2011 and 2013 under a joint venture between Duke Energy Renewables and Integrys Energy, and are contracted under long term power purchase agreements (PPAs) with a variety of commercial and municipal entities having a weighted-average credit rating of Baa2. The contracts have a weighted average remaining life of 17 years.
"We've had a successful partnership with Integrys Energy, and their decision to sell their interest in the JV to TerraForm Power prompted us to a similar decision," said Greg Wolf, president of Duke Energy's Commercial Portfolio. "These assets have been good performers, and we're pleased that TerraForm Power will continue to deliver reliable, clean energy to the customers we've been privileged to serve."