The transaction marks the largest deal, by portfolio size, for under-development onshore wind assets in the US. The acquired assets are located in the MISO, PJM and Western Interconnection power markets. The move is pursuant to a five-year joint development agreement with Tenaska, under which Tenaska will originate and develop projects exclusively for Cordelio.
Cordelio previously acquired two other wind development projects from Tenaska, including the 400 MW Firebrick project in Missouri, and Tenaska will continue to support the development of each of those projects.
Cordelio is a renewable energy company that manages an operating portfolio of more than 1.2 GW of renewable power assets in Canada and the US. The company also holds a growth pipeline of more than 14 GW of wind, solar and storage projects spread across the US. Cordelio is a portfolio company of major private equity (PE) investor Canada Pension Plan Investment Board (CPPIB).
After analyzing transaction activity of early-stage onshore wind assets in the US, Enerdatics observes that the deal volume is dominated by PE firms and PE-backed companies, who seek to capitalize on the cost declines and tax benefits related to wind energy projects in the country. Major PE sponsors include Apollo Global Management, EnCap Investments, CPPIB, and Hannon Armstrong.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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