PIPESTONE, Minn., May 8, 2014 /PRNewswire/ -- Juhl Energy, Inc. (OTCQB: JUHL, the "Company"), a leading provider of clean energy solutions and a leader in community wind power development, announced today that the Company, through its Juhl Renewable Assets, Inc. ("JRAI") division, recently reached a definitive agreement to acquire two operating wind farms in Iowa. The projects utilize GE turbines and total 3.24 megawatt nameplate capacity. The wind turbine projects are located in north central Iowa outside the towns of Manley and Kensett and have been commercially operating since November 2011. The transaction is expected to close in the next few months.
"This transaction underscores our ongoing commitment to building our residual, independent power production business made up of wind farms today and - we hope - other forms of renewable energy in the future," stated John Mitola, president of Juhl Energy. "We believe that building our asset ownership and operating division, with its predictable revenue and cash flow, is the foundation for the ongoing strength of our company. These two Iowa projects are representative of the thousands of projects under 50 MWs –the market sector where Juhl stands head and shoulders above others in its ability to own, operate and maintain such assets."
"The Iowa projects are being financed with bank debt and our Juhl Renewable Asset preferred stock," continued Mitola. "Currently our JRAI Preferred stock is only available to accredited investors who have an existing relationship with the Company. Our JRAI subsidiary is similar to many of the "yieldcos" that have recently received attention in the market, and it is paying a 9% yield reliably since inception. After we close on the Iowa projects, our JRAI division will own and operate 5 wind projects totaling approximately 25 megawatts. We maintain our long-term goal of building ownership capacity and hope to progress to management's stated goal of up to 200 megawatts - which would represent energy production assets with an initial installed cost of approximately $400 million. We believe we can get there by adding small projects alongside medium sized projects one step at a time over the next few years."
"To put our platform of accumulating energy assets in perspective, currently there are over 6,000 MWs of wind farms with nameplate capacity of less than 50 MW operating in North America. As a result, we believe our goals for additional asset acquisitions are reasonable given Juhl's presence in wind power industry and our position in the smaller wind space," said Mitola.