Talen Energy Corp. and Pattern Energy Group LP have entered into a joint venture to invest $2 billion in the financing, development and operation of about 1,400 MW of utility-scale renewable energy projects over the next five years.
Talen Energy on April 13 announced the creation of the joint venture, known as PT Energy Transitions, as part of its "strategic transformation" to a clean energy and "digital infrastructure growth platform."
The initial portfolio of the joint venture will be comprised of six solar plants in Pennsylvania, including the 100-MW Montour Solar One Project, along with a hybrid solar and wind facility in the western U.S., Talen said in its news release. The Montour County, Pa., solar plant is being built adjacent to Talen's 1,504-MW Montour coal plant. The company will retire the plant's coal-fired units by the end of 2025.
Along with the Montour plant, Talen has ownership interests in five other coal-fired power plants in Pennsylvania, plus one in Maryland and two in Montana.
"This joint venture will allow us to accelerate our clean power transformation and grow Talen's enterprise value," Talen President Alex Hernandez said in the news release.
Pattern Energy President and CEO Michael Garland called the partnership "a natural fit" as the companies "combine the respective strengths of our teams to develop a sizeable portfolio of utility scale renewable energy projects."
"Our joint venture accelerates our country's energy transition by utilizing Pattern Energy's leadership in renewable energy development together with Talen's land position and legacy transmission interconnection assets," Garland added.
Talen Energy plans to provide more details on the joint venture at its May 19 ESG Equity Investor Day.
Citi acted as Talen's exclusive financial adviser, while Gibson Dunn & Crutcher LLP acted as legal counsel.
Talen was acquired by New York private equity firm Riverstone Holdings LLC in 2016.
