US energy infrastructure company Sempra Energy has completed the sale of its wholly-owned subsidiary Sempra Renewables to the US power group American Electric Power (AEP). The total amount of the transaction nears US$1bn, of which US$584m in cash, which includes US$33m in working capital and US$470m in assuming existing project debt and tax equity obligations.
The transaction entails seven wind parks with a total combined capacity of 724 MW, two of which are owned entirely by Sempra Renewables: the Black Oak Getty wind park in Minnesota and the Apple Blossom wind project in Michigan. Sempra Renewables owns the remaining five assets jointly with BP Wind Energy (which will retain its ownership share of those projects): Auwahi Wind and battery project in Hawaii, Flat Ridge-2 Wind in Kansas, Mehoopany Wind in Pennsylvania, Cedar Creek-2 Wind in Colorado, and Fowler Ridge-2 Wind in Indiana. AEP also acquired all of Sempra Energy's wind projects currently in development. With this acquisition, AEP’s renewable generation portfolio grows to 1,075 MW of renewable generation in 11 US states. Upon completion of the 227 MW Santa Rita project (75% owned by AEP) in June 2019, AEP's renewable portfolio will increase to 1,302 MW.
AEP aims at cutting its CO2 emissions by 60% by 2030 from 2000 emission levels and by 80% by 2050. The company has reduced the share of its coal-fired plants to 47% of its power generation capacity, compared with 70% in 2005. Meanwhile, its gas-fired capacity increased from 19% to 28% and its renewable capacity rose from 4% to the current 14%. The share of renewables in its generation portfolio will now reach 16%.
Interested in Power Plants?
Enerdata has developed a market research service to screen, monitor and analyse the development of power generation assets.
Power Plant Tracker offers an interactive database and a powerful search engine covering power plants worldwide – including both installed and planned capacities for renewables and fossil fuels.