CohnReznick Capital Advises Capital Power Corporation in Raising Financing for Wind Project

Written By: Jen Neville
January 25, 2019

wind projects

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windThe Wind Power Finance & Investment Summit is widely recognized as the leading gathering place for wind industry deal makers, or as one past event attendee called it – “the highest quality of industry participants on the conference circuit. View agenda here.

Nicholas Knapp, President, COHNREZNICK CAPITAL will be speaking on Panel Discussion: Industry Consolidation and M&A

With 2021 rapidly approaching, the wind industry is focused on cutting cost and driving down the price of wind energy. This is one of several factors driving industry consolidation. At the same time, with the rush to bring projects to COD by the end of 2020, the M&A market is hot. This session will assess the M&A landscape at the company, pipeline and project level.

 What are the forces driving the M&A market?
 How will industry consolidation shape the future of the wind industry?
 Who will be the major players driving consolidation and what business models will they adopt?
 What are the expectations for project M&A for 2019-2020 and post-2020?
 Will there be any appetite for non-contracted assets?
 What will be the opportunities for buying and selling 10-15 year old PTC expired wind projects?
 How will the competition between PE funds, infrastructure funds, strategic and institutional investors play out?

Our readers get 10% off attendee registration using code ICNEWS10 at checkout.

Capital Power Corporation has closed on a tax equity investment from J.P. Morgan for its 99MW project, New Frontier Wind, in North Dakota. The financing structure provides for the efficient monetization of tax credits and accelerated depreciation benefits while allowing Capital Power Corporation to recycle a portion of the capital used to develop and construct the project. It began commercial operation last month.

The construction of the 99 megawatt facility was completed on-schedule and below its original project cost estimate of approximately $182 million. Capital Power received approximately $125 million (US$92 million) in net tax equity financing from J.P. Morgan in exchange for Class A interests of a subsidiary of the Company.

Capital Power will operate New Frontier Wind under a 12-year fixed price contract with an investment grade U.S. financial institution covering 87% of the facility’s output.  Under the contract, Capital Power will swap the market revenue from a fixed volume of New Frontier Wind’s generation for a fixed price payment over a 12-year term.

“Utilizing our in-house construction capabilities, the construction of New Frontier Wind was completed in eight months and is another successful renewable development project in the United States,” stated Brian Vaasjo, President and CEO of Capital Power. “With everything in place and completion below budget, New Frontier Wind is set to exceed our original return expectations.”

CohnReznick Capital advised Capital Power Corporation on this transaction which brings together constructive streamlined capital and helps further the growth of the renewable energy market in the U.S.

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