NRG YIELD BUYS BIGGEST U.S. WIND PROJECT FOR $870MIL

NRG Yield to buy largest N America wind farm for $870 million

Sneha Banerjee, June 4, 2014 (Reuters)

“NRG Yield Inc. has bought the 947 megawatt Alta Wind Energy Center in California for $870 million from Terra-Gen Power, an affiliate of private-equity firms Global Infrastructure Partners and Arclight Capital Partners…NRG Yield will also assume $1.6 billion in project financings but expects annual earnings from the investment to be $220 million, including returns from some land leases in the wind project’s Tehachapi, California, region…The acquisition is being described as a move to cut the NRG Energy generation portfolio’s overall emissions profile in the wake of the just-announced EPA GHG regulations…NRG Yield is a newly formed arm of NRG Energy, created to turn the guaranteed cash flow from generation projects with utility-backed power purchase agreements into a steady return for investors who buy shares…Alta Wind’s PPAs with SCE have 21 years of returns remaining for phases I-V and 22 years, beginning in 2016, for phases X and XIThis brings the NRG Energy wind portfolio to 2,839 megawatts, the fifth biggest in North America…” click here for more

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