Ullico has agreed to invest in a portfolio of more than 70 solar and wind power generation projects located all over the United States and owned by affiliates of Alberta Investment Management Corporation (AIMCo) and The AES Corporation (AES), who will retain a majority stake in the portfolio. The wind and solar farms are managed by FTP Power (sPower) and are contracted to sell power, capacity and renewable energy to investment-grade off-takers under long-term agreements. The transaction is expected to close shortly following approval by FERC.
“The composition of the portfolio naturally hedges geographic and resource-related risk, offering long-term stable cash flows that fit with Ullico’s infrastructure fund objectives,” said Jeff Murphy, portfolio manager for Ullico’s infrastructure business. It is Ullico’s first investment with sPower.
An affiliate of sPower will serve as the asset manager for all the projects along with conducting operations and maintenance for the solar projects. The projects’ wind turbines will be maintained under long-term agreements with original equipment manufacturer, General Electric.
The portfolio is Ullico’s fifth investment in renewable energy assets. In 2013, Ullico invested in the 69 MWac Kawailoa Wind Farm in Hawaii. Subsequently in 2017, Ullico invested in a 921 MWac portfolio of wind and solar generation projects spread across the United States, followed by a similar investment earlier this year in a 642 MWac portfolio of U.S. wind and solar generation projects. Finally, in August 2018, Ullico acquired a portfolio of four solar generation projects totaling 38.5 MWac located in Ontario, Canada.
Ullico is committed to projects that provide clean, low-cost energy across America. Through its infrastructure business, the company currently has investments in the water, wastewater, electricity transmission, power generation, and transportation sectors and is exploring opportunities in all core sectors.
