La Caisse to acquire 25% of Invenergy Wind

The Canadian pension will invest in the renewables producer alongside US insurer Liberty Mutual, which already owns a 16.5% stake in the business.

La Caisse de dépôt et placement du Québec has reached an agreement with Chicago-based Invenergy Wind that will allow it to buy 24.7 percent of the company.

The transaction, confirmed in a statement by Invenergy, will see the Canadian institution invest in the clean energy business alongside Boston-headquartered Liberty Mutual. The US insurer, which already owns 16.5 percent of Invenergy Wind, will maintain a stake in the company at close to its current level. Both investments are still subject to approval by the US Federal Energy Regulation Commission.

Invenergy owns, develops and operates power generation facilities in North America and Europe. Invenergy Wind, North America’s largest independent wind power generation company, has developed 45 wind farms in the US, Canada and Europe since inception, representing a generating capacity of 4,000 megawatts (MW).

A further 1,000MW of Invenergy Wind projects are currently under contract or under construction, according to the company’s website. It typically develops and operates utility-scale wind projects ranging in size from 25MW to 500MW.

The deal follows various investments by La Caisse in Invenergy’s wind portfolio. In January 2013, the Montréal-based pension paid $500 million for a minority stake in 11 US and 2 Canadian wind farms owned by the company, giving it an interest in a portfolio of about 1,500MW. It then became the majority shareholder in Canada’s Parc des Moulins wind farm last April upon investing C$42 million (€29 million; $27 million) in the 135.7MW project.

The transactions are part of La Caisse’s efforts to bolster its exposure to renewables, as evidenced by its acquisition of 25 percent of London Array 1, the world’s largest offshore wind farm, for £644 million (€804 million; $1.1 billion) last February. In June 2013, the institution also provided a $50 million loan to finance the construction and operation of Québec’s Vents du Kempt 101MW wind project.