Exelon Pays $900M For Wind Energy Rival

Exelon, one of the country’s largest electric utilities, announced yesterday it is expanding its portfolio of renewable energy projects via a $900 million acquisition of John Deere Renewables, which is the wind energy division of Deere & Company. This purchase will make Exelon one of the United States’ largest wind energy providers.

Exeleon, when the transaction closes by the end of the year, will pick up 735 megawatts of installed, operating wind capacity—enough to power 160,000 to 220,000 households—spread across 36 projects in eight states. It will also have the opportunity to pursue 1,468 megawatts of new wind projects that are in various stages of development, including the 230 megawatts in advanced stages of development. The $900 million purchase price is “valued at approximately $860 million with a provision for up to an additional $40 million upon commencement of construction on the advanced development projects.”

Exelon Deere

image via John Deere Renewables

Exelon said as well this acquisition will add to a portfolio “which already includes more than 1,000 megawatts of owned and contracted renewable power, including hydroelectricity, wind, landfill gas and solar. Before this acquisition, Exelon was already the largest wholesale marketer of wind energy east of the Mississippi, with 352 megawatts of wind power capacity from five wind projects in Illinois, Pennsylvania and West Virginia.”

“Not only does this acquisition add value for Exelon shareholders, providing incremental earnings in 2012 and cash flows in 2013, but it also is one more way to implement a clean energy future,” said John W. Rowe, Exelon chairman and CEO, in a statement. “Whether harmful emissions are priced or regulated, our combined capacity of nearly 19,000 megawatts of zero-emission wind, solar, hydro, landfill gas and nuclear power remains a clear competitive advantage that will only become more valuable.”

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I am the editor-in-chief and founder for EarthTechling. This site is my desire to bring the world of green technology to consumers in a timely and informative matter. Prior to this my previous ventures have included a strong freelance writing career and time spent at Silicon Valley start ups.