A fund managed by Ares Management’s Infrastructure and Power strategy closed on the acquisition of three operating utility-scale wind facilities in Texas from BP Wind Energy North America.
The acquisition included two wind facilities located in the ERCOT West region – Sherbino Mesa 2 (145 MW) and Trinity Hills (225 MW) – and one wind facility located in the ERCOT North region – Silver Star (60 MW). The assets have been in operation since as early as 2008 and will be repowered by removing existing wind turbine generators and replacing them with new technology from a different original equipment manufacturer – Vestas-American Wind Technology.
The repowering will maximize the efficiency and performance of the wind facilities, as well as extend their lifespan. The repowered assets are projected to achieve commercial operations in 2020.
“This transaction adds three flagship assets to the Ares portfolio and reinforces Ares’ leading position as a value-added infrastructure investor in the renewable sector,” said Keith Derman, partner and co-head of the Ares Infrastructure and Power strategy. “We are witnessing a historic transformation of the nation’s energy sector, and expect this investment to benefit from an innovative repowering with efficient new technology and a highly-proven, strong wind resource.”
“As the renewables sector matures, we are seeing an increase in investment opportunities where we can apply our structuring, construction and operational expertise to add value. We are excited to add these assets to the Ares portfolio,” said Steve Porto, principal in the Ares Infrastructure and Power strategy, who led the transaction.
