EDP in Indiana tax equity deal
Bank of America paying $190m for stake in 200MW Headwaters farm
EDP Renewables North America has agreed to sell an interest in the 200MW Headwaters wind project in Indiana for $190m to Bank of America Merrill Lynch in a tax equity transaction.
The bank will acquire 100% of the class B non-managing membership interests. EDP will own 100% of the class A managing membership interests and continue to manage the project.
EDP has asked for Federal Energy Regulatory Commission approval of the deal by 2 September.
EDP and Bank of America aim to close the transaction during the fourth quarter of 2014.
The Randolph County project will employ 100 Vestas V110 2MW turbines, according to Indiana Utility Regulatory Commission filings. Construction is under way and commercial operation is anticipated by the end of December 2014.
Headwaters will be interconnected to the transmission system owned by American Electric Power (through Indiana Michigan Power) and operated by PJM Interconnection.
The output will be sold to Indiana Michigan Power under a 20-year power purchase agreement.
Image: The developer's Blue Canyon wind farm in Oklahoma (EDP)