Pattern Energy has raised $800 million in equity to fund a 2 GW development pipeline of wind projects in North America within the next five years. Riverstone Holdings was the primary contributor, with additional investment from company management and employees.
Riverstone purchased the assets in Babcock & Brown’s development portfolio and then established Pattern after the acquisition. The firm expects to develop 300-400 MW per year over the next four-to-five years. The equity will pay for development costs for those projects, company overhead and equity investments in the projects.
Pattern is also tapping banks for $300-400 million in debt for its first few projects. It puts an average of 35% debt, less the investment tax credit, on its projects, says Mike Garland, CEO of Pattern in San Francisco.
The company is in the midst of developing the 150 MW Spring Valley wind farm 30 miles east of Ely, Nev. That project has a 20-year PPA with NV Energy and it is expected to be operational by the end of next year. Next up for development is the 40 MW Tres Vaqueros project in northern California.
Pattern is also developing five transmission projects in California and three-to-four more elsewhere. The company is looking at several acquisitions but will not rush into anything. “We never count on [acquisitions] until they’re done,” Garland says, declining to name specific projects. “This business is complicated enough. We’re looking for things that fit into our strategy.