Starwood Energy acquires 550MW gas plant in Texas

The Connecticut firm, through an affiliate, has completed its acquisition of Quail Run Energy Centre in Odessa, Texas.

An affiliate of Starwood Energy, a private investment firm focused on energy infrastructure, has completed its acquisition of Quail Run Energy Centre, a natural gas-fired power generating facility in Odessa, Texas, the Connecticut-based firm said in a statement, without disclosing financial details.

Quail Run, which has been in operation since 2007, is the ninth natural gas-fired electric power generating facility built or acquired by Starwood Energy affiliates since 2006, the firm said.

The facility, which has a nominal capacity of 550 megawatts (MW), will supply the power generated to the Electric Reliability Council of Texas (ERCOT) system, which serves 24 million customers in the state and represents about 90 percent of Texas’ electric load.

“Quail Run is a well maintained and efficient facility in a growing market and we look forward to further optimizing the facility through a combination of new short and long-term power offtake agreements,” Starwood Energy’s managing director Himanshu Saxena said.

Headquartered in Greenwich, Connecticut, Starwood Energy is an affiliate of private real estate investment firm Starwood Capital Group. The energy-focused firm invests primarily in natural gas, renewable electricity generation and power transmission with equity investments typically ranging from $25 million to $100 million or more.

Starwood Energy has raised two general opportunity funds, the most recent – Starwood Energy Infrastructure Fund II (SEIF II) – closing on $983 million in January 2014 and beating its initial target of $750 million. SEIF II will target renewable energy assets in North America.

Its predecessor, Starwood Energy Infrastructure Fund I held its final close on total commitments of $483 million. The fund has invested in projects such as the Hudson Transmission Project, a 600MW transmission line in New Jersey; the 69MW Starwood SSM Project, a solar photovoltaic plant in Ontario, Canada; the Starwood Midway, a 120MW simple-cycle peaking plant in California; and the 272MW Thermo Facility combined-cycle power plant in Denver, Colorado.

Through these two funds and other affiliated investment vehicles, Starwood Energy manages total equity commitments of more than $2 billion and has executed transactions totalling more than $4 billion in enterprise value.