EDP Renováveis, S.A. (EDPR)(EDP.LS), through its subsidiary Horizon Wind
Energy LLC, has signed an agreement to secure $90 million of
institutional equity financing from JPM Capital Corporation in exchange for a
partial interest in its 101-megawatt (MW) Lost Lakes Wind Farm installed in
December 2009 in Dickinson County, Iowa.
The institutional equity investment will provide the investor with access to the
accelerated asset tax depreciation (MACRS) benefits and to the cash grant,
which the Lost Lakes project will apply for pursuant to the American Recovery
and Reinvestment Act of 2009.
The Lost Lakes transaction will represent EDP Renováveis’ second institutional
equity transaction with JPM Capital Corporation that incorporates the cash
grant in lieu of production tax credits, and through it EDPR will improve the
project’s economics and the company’s fiscal efficiency.
With 20 offices and 22 wind farms across the United States, Horizon Wind
Energy has developed more than 3,400 MW and operates over 2,800 MW of
wind farms. EDPR’s installed capacity increased four-fold between 2005 and 2007,
becoming the third largest wind energy company in the world.
In November EDPR said it intends to devote approximately $4 billion to building new wind farms in the United States through 2012.
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