Orsted sells 50% stake in US Solar, storage projects for $572M

Orsted (CSE:ORSTED ) finalized an agreement to divest a 50% equity stake in three of its onshore projects in the United States. The deal, valued at $572 million, was struck with Energy Capital Partners (WA:CPAP ) and encompasses two solar farms in Texas and a combined solar and battery storage project in Arizona.

The transaction includes the 468-megawatt Mockingbird Solar and the 250-megawatt Sparta Solar farms located in Texas. Also part of the deal is the Eleven Mile Solar Center in Arizona, which boasts a capacity of 300 megawatts of solar power and an additional 300 megawatts/1,200 megawatt-hours of battery storage capability.

These projects, which are expected to commence operations in 2024, are already equipped with tax equity partnerships and power purchase agreements, indicating a readiness for operational activity and a secured revenue stream.

Orsted's strategic move allows the company to retain a 50% equity ownership interest in the projects. In addition to holding a significant stake, Orsted will also continue to manage the operations of these projects throughout their lifetime, ensuring ongoing involvement in their performance and management.

The partnership with Energy Capital Partners is a testament to the growing interest and investment in renewable energy infrastructure in the United States.

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Source: Investing.com