TransAlta recognizes renewable power generation as a high growth opportunity. The company has grown this segment of our business significantly during the last several years and continues to see tremendous opportunities going forward to accelerate the growth of this part of its business. Establishing an entity with scale and diversity comprised of fully contracted assets, the majority of which are renewable, will enhance the ability of both companies to compete for growth and create value for shareholders. Scale and diversification also provide investors with more stable base cash flows.
The addition of the Australian portfolio of gas-fired assets allows further diversity, doubles the company size by 2017, and creates additional value for shareholders.
The same team that operated the assets within TransAlta will continue to operate them for TransAlta Renewables. The agreement in place is structured at cost – with no provision for gain or loss.