Ares Management Corporation announced that a fund managed by its Infrastructure and Power strategy has closed on the acquisition of three operating utility-scale wind facilities in Texas from BP Wind Energy North America, Inc.
The acquisition includes two wind facilities located in the ERCOT West region – Sherbino Mesa 2 (145 MW) and Trinity Hills (225 MW) – and one wind facility located in the ERCOT North region – Silver Star (60 MW). The assets have been in operation since as early as 2008 and will be repowered by removing existing wind turbine generators and replacing them with new best-in-class technology from a different original equipment manufacturer. The repowered assets are projected to achieve commercial operations in 2020.
BP said that it divested the three wind energy operations in Texas as part of a broader restructuring designed to optimize its U.S. wind portfolio for long-term growth.
BP Wind Energy will use the proceeds from the deal to fund technology upgrades elsewhere within its substantial remaining U.S. wind portfolio.
Following the deal, BP will continue to own interests in 11 wind farms in eight states, 10 of which it operates, with a net ownership of more than 1000 megawatts of wind power.