GE Energy Financial Services, a unit of General Electric (NYSE: GE), has committed to invest in a 410-megawatt wind farm portfolio across the U.S., among its single largest wind investments.
It also announced it would take a stake of up to 22% in French wind farm developer in exchange for Theolia (TEO.PA) acquisition of GE’s European wind farms (165 megawatts).
The unit will invest approximately $270 million for 70% of the Class A equity, with a subsidiary of Wachovia Corp. (NYSE: WB), providing the balance, in six wind farms in California, Illinois, New Mexico and Pennsylvania, until now owned by affiliates of global investment and advisory firm Babcock & Brown (ASX: BNB). Affiliates of Babcock & Brown will be the manager and will remain as Class B equity co-investors in the portfolio. Additional financial details were not disclosed.
All the wind farms have either been completed or will be completed by the end of April, except Allegheny Ridge II, expected to be finished by December.
“This transaction continues the expansion of the geographic footprint and technology mix of our wind holdings,” said Kevin Walsh, Managing Director and leader of renewable energy at GE Energy Financial Services. “In addition, the portfolio helps the states of Arizona, California, Illinois and Pennsylvania meet their renewable energy targets, and reinforces GE’s commitment to ecomagination.”
With this transaction, GE Energy Financial Services has invested or committed to invest equity in 25 wind farms, bringing the total capacity of its wind equity holdings globally to more than 1,300 megawatts.
It has reached the halfway point of its goal to have a $3 billion renewable energy portfolio, which also includes investments in solar, water and geothermal.
The next likely target for investment is India, where the company plans to partner with local companies.
About GE Energy Financial Services
GE Energy Financial Services’ 300 experts invest globally with a long-term view, across the capital spectrum and the energy and water industries. With $13 billion in assets, the unit invests more than $5 billion annually in two of the world’s most capital-intensive industries.
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