EDF Renewable Energy and UBS International Infrastructure Fund announced last wee that they have signed a definitive agreement under which UBS International Infrastructure Fund will acquire a 50 % equity interest from EDF Renewable Energy in the 161 megawatt (MW) Spinning Spur II wind farm project in Texas, subject to completion of construction and customary conditions precedent.
EDF Renewable Energy will remain in charge of development, construction and tax-equity financing until commercial operation is achieved; then EDF Renewable Services will bring in their expertise in operations and maintenance to optimize both partners' long-term investment profitability.
Spinning Spur II, located in Oldham County Texas, commenced construction in June 2013 with an expected COD (Commercial Operation Date) on or about July 1, 2014. Spinning Spur II will utilize 87 General Electric (GE) wind turbines with a rated capacity of 1.85 MW each. The project will be one of the first to take advantage of the new CREZ (Competitive Renewable Energy Zones) transmission lines connecting the wind generating capacity of the Texas Panhandle to high electricity demand areas in the state.
Raphael Declercq, EDF Renewable Energy's Director of Divestiture and Portfolio Management, said:
"The transaction model allowed EDF Renewable Energy to team up with a strong partner like UBS Infrastructure early in the project lifecycle. EDF Renewable Energy will remain in charge of development, construction and tax-equity financing until commercial operation is achieved; we will then bring in our expertise in operations and maintenance through EDF Renewable Services to optimize both partners' long-term investment profitability."
"We are delighted to announce the Fund's future investment in Spinning Spur II. With this investment, we recognize the experience and successful track record of EDF Renewable Energy in North America and other global markets and look forward to the completion of construction and operation of this important renewable energy project with our partner in the years ahead. Spinning Spur II, upon completion of its construction, is expected to generate stable, long term returns for the Fund, consistent with our investment objective."
UBS International Infrastructure Fund, managed by UBS Global Asset Management, is a $1.5 billion specialist OECD infrastructure investment fund which, in addition to its pending investment in Spinning Spur II, owns investments in Gassled through its Njord Gas Infrastructure company, Collgar Wind Farm (a 206 megawatt wind farm in Australia), Northern Star Generation (a 1,402 megawatt portfolio of power stations in the United States), Saubermacher (a waste management business serving central and eastern Europe based in Austria) and Southern Water (a water and sewerage company serving southeast England).