Baar-Zug, Switzerland, 23 November 2015
Partners Group, the global private markets investment manager, has acquired a 25% stake in Sentinel Energy Center (Sentinel), an 800 MW California-based natural gas-fired power generation facility, on behalf of its clients. Partners Group acquired the equity from Competitive Power Ventures Holding, LLC, which developed the facility and provides asset management services to the project. There is no change in the ownership of Sentinel's remaining equity, which continues to be held by Diamond Generating Corporation and Voltage Finance.
Sentinel is a simple-cycle, natural gas-fired, contracted power generation facility located in the Los Angeles Basin area of California. It is the largest plant of its kind in the world, with eight state-of-the-art GE LMS100 aeroderivative combustion turbines. Sentinel supports California's increasing emphasis on renewable energy by providing flexible capacity that can start and stop on demand in response to fluctuations in supply from intermittent renewable electricity sources such as wind and solar. The plant, which reached commercial operation in May 2013, can ramp up to full capacity in less than ten minutes, enabling electric utilities to maintain grid stability.
Todd Bright, Managing Director and Head of Americas Private Infrastructure at Partners Group, states: "Sentinel is a highly flexible resource perfectly situated within a market that has a growing need for this flexibility. It is a strong complement to the state of California's overarching goal to increase the integration of renewable energy sources. We look forward to working with our partners, Diamond and Voltage, to continue providing clean, reliable, and flexible power capacity, both under the plant's existing power purchase agreement and, in the future, to other utilities throughout the region."
Although Partners Group invests broadly across the infrastructure subsectors, power generation and energy are key areas of focus in the US, where Sentinel is the firm's third investment in a natural gas-fired power plant. In mid-2012, Partners Group was the sole mezzanine investor in a new-build 758 MW combined cycle gas turbine power plant in Temple, Texas. That investment was exited in March 2015. Separately, Partners Group invested in the acquisition of an 856 MW gas-fired cogeneration facility in the greater Houston area in Texas in early 2014.