Polaris acquires controlling interest in Punta Lima Wind Farm
The $20 million transaction supports Puerto Rico’s clean energy transition.
Five months after announcing the transaction, Canada-based Polaris Renewable Energy Inc. has completed the acquisition of a controlling equity interest in Punta Lima Wind Farm LLC, a 26 megawatt (MW) wind project in Naguabo, Puerto Rico.
The transaction was finalized through an equity capital contribution agreement and LLC agreement with Santander Bank N.A., which previously owned the project through its subsidiary.
Punta Lima Wind Farm initially began operations in October 2012. It was reconstructed and recommissioned by Santander following damage sustained during Hurricane María in 2017.
The installation of 13 Vestas V100-2.0 MW wind turbines began in 2022, with commercial operation achieved in March 2024, when the project resumed operations. It operates under a 20-year power purchase agreement with the Puerto Rico Electric Power Authority that expires in March 2044.
The transaction, structured as a tax-equity investment, makes Polaris the manager and operator of the wind farm, while Santander retains a tax equity interest. The $20 million equity contribution from Polaris was subject to customary closing adjustments, including working capital changes. The acquisition required regulatory approvals and execution of the LLC Agreement.
“This strategic acquisition further deploys Polaris capital into another jurisdiction while adding wind into our generation mix,” said Marc Murnaghan, president and CEO of Polaris. “We believe this transaction provides attractive near-term returns to our shareholders as well as enhancing our growth opportunities significantly. This includes the use of energy storage to provide competitively priced energy and grid stabilization services as well as exploring further strategic opportunities on the island given its stated future energy requirements.”
Nuno Andrade of Santander Corporate & Investment Banking highlighted the project’s importance to Puerto Rico’s energy transition.
“Santander is proud to have rebuilt the Punta Lima wind farm in Puerto Rico and is very pleased to be selling its interest to a specialist partner in Polaris. It was the right thing to do to support the island’s clean energy efforts, and we are very happy with this outcome,” Andrade said.
Polaris’ renewable energy projects in Latin America and the Caribbean include a “geothermal plant (~82 MW), four run-of river hydroelectric plants (~39 MW), three solar (photovoltaic) projects in operation (~35 MW)” and the newly acquired Punta Lima Wind Farm (26 MW).
