Polaris Renewable Energy to take over 26-MW wind farm in Puerto Rico

Polaris Renewable Energy Inc (TSX:PIF) has announced a USD-20-million (EUR 18.4m) agreement to acquire a controlling stake in a 26-MW operational wind farm in Puerto Rico owned by a unit of Banco Santander SA (BME:SAN).

The deal has a tax-equity structure which will result in Polaris becoming the manager and operator of the site with a controlling equity interest, while Santander will keep a tax equity interest, a statement says.

The Punta Lima Wind Farm is located in the Municipality of Naguabo. The facility, which was rebuilt and recommissioned by Santander, has a 20-year power purchase agreement (PPA) in place with Puerto Rico Electric Power Authority (PREPA) terminating in March 2044.

The transaction is expected to close within 90 days, subject to regulatory clearances and other standard conditions.

“We believe that this transaction provides attractive near-term returns to our shareholders as well as enhancing our growth opportunities significantly. This includes the use of energy storage to provide competitively priced energy and grid stabilization services as well as exploring further strategic opportunities on the island given its stated future energy requirements,” said Polaris’ CEO Marc Murnaghan.

Canada-listed Polaris is focused on renewable energy projects in Latin America, with presence across five countries. Its portfolio includes an 82-MW geothermal plant, three run-of-river hydroelectric plants of around 39 MW and three solar farms in operation with a combined capacity of 35 MW.

(USD 1 = EUR 0.925)

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