Northland Power Sells La Lucha Solar Facility to Cometa Energía for $205M

In a strategic move to optimize its portfolio, Canadian-based Northland Power has finalized the sale of its 100% stake in the La Lucha solar facility. The transaction, completed on June 28, 2024, transfers ownership of the 130-megawatt plant to Cometa Energía, a subsidiary of Saavi Energía. The deal was valued at approximately CAD 210 million, yielding net proceeds of around $205 million for Northland after taxes and fees.

The sale concludes an agreement first announced on March 4, 2024. Located in Durango, Mexico, the La Lucha facility achieved commercial operations in June 2023. For Northland, this divestment aligns with a broader corporate strategy focused on capital recycling and concentrating efforts on core markets.

“This transaction underscores Northland’s strategy to divest assets from non-core markets, enhancing liquidity and focusing our business on core markets,” stated Mike Crawley, President and CEO of Northland Power. The proceeds from the sale are earmarked for debt reduction and other general corporate purposes, freeing up capital for future reinvestment in key growth areas.

For the buyer, this acquisition marks a significant milestone. La Lucha is the first operational solar facility for Saavi Energía, Mexico’s second-largest independent power producer (IPP). The purchase diversifies Saavi’s portfolio, which has historically centered on six combined-cycle gas turbine power plants. Cometa Energía itself stands as Mexico’s largest privately owned standalone generator and the fourth-largest IPP in the country.

Owned by private equity firm Global Infrastructure Partners since 2021, Saavi Energía’s expansion into solar power signals a strategic shift within Mexico’s energy sector. This sale not only allows Cometa Energía to build out its renewable energy portfolio but also demonstrates Northland Power’s successful execution of its asset rotation plan, setting a notable precedent for energy infrastructure transactions in the region.

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