Pattern Energy Group Inc (NASDAQ:PEGI) has agreed to sell its 90-MW interest in the K2 wind farm in Ontario for the sum of CAD 216 million (USD 164.8m/EUR 144.2m).
Relatively speaking, the third quarter was slow-ish when it came to disclosures about big corporate power purchase agreements (PPAs) for solar and wind energy. "Just" 770 megawatts of contracts were announced, compared with about twice that from April 1 to June 30.
The largest wind farm in the West has been cleared for construction, but adequate transmission for the 2,200-MW project remains an obstacle. The New Mexico Public Regulation Commission on Oct. 3 approved a construction permit for Pattern Energy of San Francisco to install up to 950 turbines across 300,000 acres in east central New Mexico.
"It was another solid quarter with CAFD up more than three times the same period last year, which puts us in a great position to achieve our targeted CAFD(1) for the year," said Mike Garland, President of Pattern Energy. "We continue to take proactive measures to increase our CAFD without issuing common equity including, asset recycling, repowering Gulf Wind and the implementation of cost savings.
"It was a great quarter with CAFD up 19%, as production was solid and our disciplined cost management initiatives delivering results. We are on track to achieve our targeted CAFD(1) for the year," said Mike Garland, President and CEO of Pattern Energy. "At 29% ownership of Pattern Development 2.0, we will have achieved our target ownership level in the development business which we believe will provide meaningful value to shareholders. Our identified ROFO ("right of first offer") list with Pattern Development 2.0 has grown by four new projects since our original investment in June of last year.
Mike Garland, Pattern Energy Inc. president and chief executive officer, and Mike Lyon, chief financial officer will host a conference call (listen only) at 10:30 a.m. to discuss the first quarter 2018 financial results.