TransAlta buys solar, wind projects in U.S. for $76M

Calgary-based TransAlta Corp has made its first foray into solar power after buying two U.S. renewable projects from Rockland Capital LLC for $75.8 million US.

TransAlta, which has coal-powered power plants in Alberta and the U.S., as well as hydro and wind projects, says the purchase is part of its strategy to expand its renewable.

It has bought 21 MW of solar projects located in Massachusetts and a 50 MW wind facility in Minnesota, all with long-term power purchase contracts.

Massachusetts has a solar renewable energy credit program, established to encourage investment in distributed solar generation.

TransAlta recently bought wind assets through a transaction with Suncor and says it could transfer these assets to a new TransAlta Renewables unit.

The U.S. has made commitments to move away from coal generation for electricity and presidential candidate Hillary Clinton is pledging to invest in renewables.

Clinton said Sunday that she would put the United States on a path toward generating enough renewable energy to power every home in the country by 2027.

Alberta's new NDP government has also pledged to move away from coal-fired power.

That poses a risk for TransAlta, which gets part of its earnings from coal-fired power plants in Alberta and the western United States.