Ares Management acquires 430MW wind farms in Texas from BP Wind Energy

Wind industry news : Ares Management said that a fund managed by its Infrastructure and Power strategy has completed acquisition of three operating wind farms in Texas with a combined capacity of 430MW from BP Wind Energy North America.

The transaction involved two wind farms in the ERCOT West region – 145MW Sherbino Mesa 2 and 225MW Trinity Hills and a wind farm in the ERCOT North region – 60MW Silver Star (60 MW).

Steve Porto – Principal in the Ares Infrastructure and Power strategy said: “As the renewables sector matures, we are seeing an increase in investment opportunities where we can apply our structuring, construction and operational expertise to add value. We are excited to add these assets to the Ares portfolio.”

The three wind farms in Texas have been operating since as early as 2008 and will be repowered by replacing existing wind turbine generators with new turbines from Vestas-American Wind Technology.

The repowering of the three Texas wind farms is expected to maximize their efficiency and performance and also extend their lifespan.

The repowered wind farms are estimated to enter into commercial operations in 2020.

Keith Derman – Partner and Co-Head of the Ares Infrastructure and Power strategy said: “This transaction adds three flagship assets to the Ares portfolio and reinforces Ares’ leading position as a value-added infrastructure investor in the renewable sector.

“We are witnessing a historic transformation of the nation’s energy sector, and expect this investment to benefit from an innovative repowering with efficient new technology and a highly-proven, strong wind resource.”

For BP Wind Energy, the sale of the three wind farms in Texas is part of a wider restructuring program intended to streamline its wind portfolio in the US for long-term growth. BP Wind Energy will use the proceeds from the sale to fund technology upgrades in another place within its substantial remaining wind portfolio in the US.

The sale of the three wind farms in Texas will leave the BP unit with ownership stakes in 11 wind farms in eight US states, 10 of which it operates, with a net ownership of over 1GW of wind power.

Dev Sanyal – CEO, BP Alternative Energy said: “BP’s commitment to a low-carbon energy future remains as strong as ever as we seek to reduce emissions in every part of our business, improve our products and create new low-carbon businesses.

“We remain one of the largest operators of renewables amongst our peers and continue to grow as we see more opportunities.”

For more wind industry news and energy acquisition news, keep following Business-News-Today.com.