Southern Power Co. has completed the sale of its 33% stake in an approximately 1,700-MW solar portfolio to an affiliate of Global Atlantic Financial Group Ltd. for $1.18 billion.
Under the transaction, Scarlet Renewables LLC acquired the stake in SP Solar Holdings I LP, which indirectly owns 26 operating solar facilities, according to a May 29 regulatory filing. The facilities hold long-term power purchase agreements with customers across the United States.
The Southern Co. subsidiary will own a 67% interest in SP Solar Holdings I. It will act as the general partner in the partnership and assume operational responsibilities for the projects.
Separately, Southern Power said it has acquired the 100-MW Wildhorse Mountain wind facility in Pushmataha County, Okla., for undisclosed terms.
The acquisition comes as Southern is contemplating third-party tax equity deals for Southern Power's wind fleet, which could close in the fourth quarter and reduce debt by $1 billion.
Roaring Fork Wind, a partnership between Renewable Energy Systems Americas Inc. and Vestas Wind Systems A/S, co-developed the project, which is expected to enter commercial operations in the fourth quarter of 2019.
The facility will its entire output to Arkansas Electric Cooperative Corp. under a 20-year power purchase agreement. Arkansas Electric plans to sell renewable energy credits associated with the facility.
The RES Group subsidiary will provide the balance of plant construction, and Vestas will provide long-term maintenance of the turbines through a 20-year service agreement.
