July 3, 2024

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

Northland Power has finalized the sale of its La Lucha solar facility to Cometa Energía, a subsidiary of Saavi Energía, for $205 million in cash. The transaction, originally announced in March 2024, has now been successfully completed.

Northland Sells 130MW Solar Facility to Cometa Energía

Northland Power is a leading independent power producer specializing in developing, financing, constructing, owning, and operating power infrastructure assets. The company harnesses energy from renewable sources including natural gas, biomass, wind, and solar, utilizing both simple and combined-cycle gas turbine and cogeneration technologies. Northland Power collaborates with indigenous partners, independent companies, and municipalities to develop and operate power-generation facilities. The company has operational footholds in Latin America, Asia, North America, and Europe.

Northland transferred ownership of the 130MW La Lucha solar asset to a local firm, Cometa Energía. Cometa, a subsidiary of Saavi Energía, is Mexico's largest privately held stand-alone generator and the fourth-largest independent power producer in the country.

As a wholly-owned subsidiary of Global Infrastructure Partners, Cometa is the second-largest independent power producer in Mexico. It operates approximately 2.6 GW across six plants and three mobile units, capturing a 10% market share. Additionally, Cometa manages three compression plants throughout the country.

Northland Sells La Lucha Plant for $205M

In March, Northland agreed to sell its entire stake in the La Lucha plant, anticipating proceeds of approximately USD 205 million (EUR 191.3m) after taxes and fees. The sale of the solar farm is also in line with Northland's strategy to recycle capital, utilizing the funds raised to repay debt and for general corporate purposes.

The divestment was part of the company’s strategy to concentrate on core markets, streamline its business structure, and reinvest capital.

Mike Crawley, President and CEO of Northland Power, stated: “This transaction underscores Northland’s strategy to divest assets from non-core markets, enhancing liquidity and focusing our business on core markets.”

La Lucha Marks Saavi's First Operational Solar Facility

Saavi's first operational solar facility will be La Lucha. The La Lucha PV park has been generating electricity since June of last year, and the divestment represents a major milestone for the company in Mexico.

Saavi's current portfolio, as stated on its website, comprises six combined cycle gas turbine power plants, along with compression stations and associated natural gas pipelines. Since 2021, Saavi has been under the ownership of the private equity firm Global Infrastructure Partners.

This transaction represents a significant milestone for Cometa Energía as it expands its renewable energy portfolio, while also highlighting Northland Power's dedication to improving liquidity and focusing on strategic initiatives. As both companies adapt to changes in the energy sector, this sale establishes a benchmark for future developments in Mexico's renewable energy industry.

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