Pattern Energy turns out more power in Q3 2015 as it adds new facilities

Pattern Energy Group Inc. (NASDAQ: PEGI) (TSX: PEG) said in a Nov. 5 earnings statement that it sold 1,256,403 MWh of electricity on a proportional basis in the third quarter of 2015 compared to 710,326 MWh sold in the same period in 2014.

Pattern Energy sold 3,390,081 MWh of electricity on a proportional basis for the nine months ended Sept. 30 compared to 2,026,235 MWh sold in the same period in 2014. These increases are primarily the result of the commencement of commercial operations at various projects throughout 2014 and 2015 and the acquisition of new projects in 2015.

Specifically, commencement of commercial operations at Panhandle 2, Grand, K2 and Logan’s Gap and the acquisitions of Lost Creek, Post Rock and non-controlling interests in Gulf Wind impacted both the quarterly and year-to-date periods. The year-to-date increase was also positively impacted by the first full period contribution from commencement of commercial operations at South Kent, Panhandle 1 and El Arrayán at various times during 2014.

Pattern Energy’s Amazon Wind Farm (Fowler Ridge) project in Indiana is currently in construction, with owned capacity of 116 MW and a targeted commercial operation date in the fourth quarter of this year.

In July 2015, Pattern Energy purchased the remaining 170 MW in the 283 MW Gulf Wind facility from MetLife Capital LP and Pattern Development. With the purchases, Pattern Energy now owns 100% of the membership interests in the Gulf Wind facility.

Pattern Energy has the Right of First Offer (ROFO) on a pipeline of acquisition opportunities from Pattern Development.

On Aug. 7, Pattern Development, through two of its subsidiaries, entered into two 20-year Power Purchase Agreements (PPAs) with Southern California Edison in connection with 297 MW of a 497 MW gross capacity wind power project, referred to as “Broadview” and based in Curry County, New Mexico, that was previously added to the identified ROFO list. Subsequent to the end of the quarter, on Oct. 20, Pattern Development entered into a 25-year PPA with the Sacramento Municipal Utility District in connection with the remaining 200 MW of the wind project, referred to as “Grady.” The project, which is being built in multiple phases, will deliver wind power directly into California.

The identified ROFO list stands at 1,270 MW of total owned capacity. Since its IPO, Pattern Energy has purchased 832 MW from Pattern Development and in aggregate grown the identified ROFO list from 746 MW to a total of 2,102 MW. The current list of identified ROFO projects is:


















Asset

 

Location

 

Owned MW

 

Commercial Operation

Armow

 

Ontario

 

90

 

In construction

Meikle

 

British Columbia

 

180

 

In construction

Conejo Solar

 

Chile

 

84

 

In construction

Belle River

 

Ontario

 

50

 

Securing final permits

Henvey Inlet

 

Ontario

 

150

 

Late stage development

Mont Sainte-Marguerite

 

Québec

 

147

 

Late stage development

North Kent

 

Ontario

 

43

 

Late stage development

Broadview/Grady

 

New Mexico

 

398

 

Late stage development

Tsugaru

 

Japan

 

63

 

Late stage development

Ohorayama

 

Japan

 

31

 

Late stage development

Kanagi Solar

 

Japan

 

5

 

In construction

Futtsu Solar

 

Japan

 

17

 

In construction

Otsuki

 

Japan

 

12

 

Operational

Total

     

1,270

   

The list of identified ROFO projects represents a portion of Pattern Development’s 5,900 MW pipeline of development projects, all of which are subject to Pattern Energy’s ROFO. The 5,900 MW includes Pattern Development’s interests in both its majority stake in Tokyo-based GPI and its joint venture with CEMEX Energia in Mexico. GPI has up to 1,000 MW of near and longer term wind and solar projects in development. The joint venture between Pattern Development and CEMEX Energia has a goal of developing 1,000 MW of wind and solar generation in Mexico over the next five years where recent reforms set a mandate of 35% of generation to come from clean resources by 2024.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.