US renewable power producer TerraForm Power Inc (NASDAQ:TERP) has agreed to acquire two concentrated solar power (CSP) plants in Spain with a combined capacity of about 100 MW.
A wholly-owned unit of TerraForm Power will pay a total equity purchase price of EUR 94.1 million (USD 104m) for two 49.9-MW solar thermal power facilities located near some of the company’s existing CSP assets.
TerraForm Power said in a regulatory filing that each of the plants being acquired has nine hours of storage capacity and both are regulated under the local framework for renewable power, with some 19 years of remaining regulatory life.
The buyer expects to complete the transaction at the start of the first quarter of 2020. It is seen to generate levered US dollar returns on equity that exceed the 9%-11% range targeted by the company.
(EUR 1.0 = USD 1.106)