Clearway Energy Inc. agreed to acquire the remaining 50% equity interest in the Utah Solar Portfolio that it does not currently own for $335 million, the company said in a release on Aug. 23.

Based in Princeton, N.J., Clearway Energy is one of the largest renewable energy owners in the U.S. with over 4,700 net megawatts (MW) of installed wind and solar generation projects. The company is sponsored by its controlling investor Global Infrastructure Partners III (GIP).

“The acquisition of the remaining 50% interest in the Utah Solar Portfolio will continue the company’s successful track record of executing on third party transactions to meet our long-term growth objectives,” commented Christopher Sotos, Clearway Energy’s president and CEO, in the company release.

The Utah Solar Portfolio consists of seven utility-scale solar farms located in Utah representing 530 MW of capacity that achieved commercial operations in 2016. The assets within the portfolio sell power subject to 20-year PPAs with PacifiCorp that have approximately 15 years remaining under the agreements.

“With this transaction,” Sotos continued, “Clearway will invest in new growth at attractive economics, increase its long-term contracted cash flow from utility-scale solar, and further diversify its portfolio on a regional basis.”

Clearway Energy expects to finance the acquisition in part with new non-recourse project level debt of between $210 million to $240 million resulting in an expected net corporate capital commitment of approximately $95 to $125 million, according to the company release. 

Based on current expected terms and conditions of the new non-recourse project financing, the acquisition of the remaining interest in the Utah Solar Project is expected to provide incremental annual levered asset CAFD on a five-year average basis of approximately $9 million to $11 million prior to corporate financing beginning Jan. 1, 2022, the release added.

The transaction is projected to close fourth-quarter 2021, subject to customary closing conditions.