Joint Venture will develop 1.4 Gigawatts of solar and wind energy projects principally located on Talen’s asset footprint and create a $2.0 billion energy transition growth investment opportunity
PVTIME – Talen Energy Corporation (“Talen”) announced today that it has entered into a joint venture with Pattern Energy Group LP (“Pattern Energy”) named “PT Energy Transitions” to pursue the development, financing, construction and operation of approximately 1.4 Gigawatts of utility scale renewable energy projects over the next five years. PT Energy Transitions will benefit from the collective strengths of its partners, including Pattern Energy’s development and construction capabilities, while utilizing Talen’s advantaged asset footprint.
The initial PT Energy Transitions project portfolio is comprised of six solar facilities in Pennsylvania and a hybrid solar and wind facility in the Western United States. The joint venture is an expansion of Talen and Pattern Energy’s first joint development project, Montour Solar One, a 100 Megawatt solar power plant to be built adjacent to Talen’s legacy Montour fossil generating station in Washingtonville, Pennsylvania. Montour is among the coal-fired facilities that Talen announced will cease burning coal by the end of 2025 as part of its transformation to a sustainable, ESG-focused future. The joint venture is expected to invest approximately $2.0 billion of capital into the energy transition over the next five years, beginning with the Montour Solar project, which is one of the largest renewable investments in Pennsylvania.
“Talen is pleased to expand its long-term relationship with Pattern Energy as we continue our strategic transformation to a renewable energy and digital infrastructure growth platform,” said Alex Hernandez, Talen’s President. “This joint venture will allow us to accelerate our clean power transformation and grow Talen’s enterprise value. PT Energy Transitions is a tangible expression of Talen’s Force for Good ESG strategy, which in addition to decarbonizing our asset base, will invest in our communities and provide opportunities for our people.”
“Partnering with Talen is a natural fit for Pattern Energy as we combine the respective strengths of our teams to develop a sizeable portfolio of utility scale renewable energy projects,” said Mike Garland, President and CEO of Pattern Energy. “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. We look forward to executing on these projects in partnership with Talen and to growing the scope of our PT Energy Transitions joint venture in the years ahead.”
Talen management will provide additional details at Talen’s ESG Equity Investor Day on May 19th. Institutional investors may register to participate in the event via the following registration link: https://talenenergy.investorroom.com/2021-esg-equity-investor-day. Information on Talen’s website is not part of this press release.
Citi acted as exclusive financial advisor to Talen. Gibson Dunn & Crutcher, LLP acted as legal counsel.