Greenbacker Renewable Energy Company LLC announced that through a wholly owned subsidiary, it purchased Fossil Gulch Wind Park for approximately $6,175,000. Fossil Gulch is a 10.5-MW wind farm located in Hagerman, Idaho that sells power directly to the local public utility, Idaho Power Company.
The Fossil Gulch project has a 20-year escalating power purchase agreement (PPA), with about eight years remaining as of the acquisition date. Pricing on the PPA is based on a $0.061/kWh rate with annual escalations over the contract period, and includes a contract to sell renewable energy tax credits to a third party through December 31, 2018.
The facility originally commenced operations in Q3 2005 and it has been operated continuously since then. With this acquisition, the company now owns in excess of 45 MW of wind-power assets.
“Adding another wind asset in the northern United States continues to add significant financial diversification to Greenbacker’s current portfolio of commercial-grade wind farms,” stated Charles Wheeler, CEO of Greenbacker. “As we strategically invest in select wind assets, we continue to work towards the broader strategy of acquiring premier commercial renewable energy assets with high-quality offtakers.”
In addition, on June 30, 2017, Greenbacker closed on the purchase of an additional 1,252 operating residential photovoltaic solar systems for a purchase price of approximately $6,000,000. The systems provide an aggregate generating capacity of 8.917 MW and are located in Arizona, California, Connecticut, Massachusetts, Maryland, Nevada, New Jersey and New York.
Each system possesses either a power purchase agreement or lease agreement that had an original contractual term of 20 years.
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