What Does Pattern Energy Do?

Pattern Energy is an independent renewable energy company that develops, constructs, owns and operates utility-scale wind and solar energy projects in the United States, Canada, Japan, and Mexico. The company is headquartered in San Francisco, California and was founded in 2009 by its chairman, Michael Garland, and CEO, Mike Lyon.

Garland and Lyon originally founded the company due to the lack of growth in renewable energy in the early 2000s and sought to accelerate the growth of wind power as an alternative to fossil fuel plants. They aimed to create a company focused solely on renewable energy projects. Since its founding, Pattern Energy has become a leader in developing best-in-class, renewable energy projects around the world.

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Wind Energy Projects

Pattern Energy has developed over 20 wind energy projects across North America with a total installed capacity of over 5,500 megawatts. The company’s wind projects are located in high quality wind resource areas in California, Texas, New Mexico, Ontario and Quebec. Some of Pattern Energy’s major wind projects include:

– Ocotillo Wind in California – 265 megawatt capacity

– Gulf Wind in Texas – 283 megawatt capacity

– Meikle Wind in British Columbia – 180 megawatt capacity

– Broadview Wind in New Mexico – 324 megawatt capacity

These large-scale projects harness the strong wind resources in these regions to generate clean, renewable electricity for local communities and the broader North American electricity grid. With over 20 operational wind farms, Pattern Energy has established itself as a leading wind power developer in North America.

Solar Energy Projects

Pattern Energy has developed several large-scale solar energy projects across North America. The company’s solar portfolio totals over 1,800 megawatts of renewable power production capacity. Major solar projects developed by Pattern Energy include:

The 118 MW Grady Wind facility located in Curry County, New Mexico which produces enough electricity to power over 35,000 homes.

The 150 MW Meikle Wind facility located near Tumbler Ridge, British Columbia which generates 550,000 MWh of clean energy annually.

The 324 MW Broadview Wind located in New Mexico which powers over 187,000 homes each year.

With these and other facilities, Pattern Energy has established itself as a leading developer of solar energy projects across North America. The company’s solar portfolio plays a vital role in advancing renewable energy nationwide.

Renewable Energy Goals

As a leading renewable energy company, Pattern Energy has ambitious goals and targets for increasing renewable energy production and supporting the transition to clean energy.

Pattern Energy aims to grow its portfolio of wind and solar energy projects to 10 GW of renewable power capacity by 2024. This target demonstrates the company’s commitment to accelerating the growth of renewable energy and reducing dependence on fossil fuels.

The company also has a goal to achieve carbon neutrality by 2025. This involves reducing carbon emissions across Pattern Energy’s operations and offsetting any remaining emissions. Achieving carbon neutrality will eliminate the company’s carbon footprint and demonstrate leadership in sustainability.

In addition to its own goals, Pattern Energy contributes meaningfully to renewable energy growth worldwide. The company’s operating wind and solar projects help avoid over 2 million metric tons of greenhouse gas emissions annually. As Pattern Energy continues expanding its portfolio, its contribution to displacing fossil fuel energy will grow.

Through these ambitious renewable energy targets and its growing portfolio of projects, Pattern Energy aims to play a leading role in fighting climate change and building a sustainable energy future.

Partners & Investors

Pattern Energy has partnered with numerous high-profile companies and investors to fund and develop its renewable energy projects. Some of its major partners and investors include:

Public Sector Pension Investment Board (PSP Investments) – One of Canada’s largest pension investment managers, PSP Investments has invested over $1 billion in Pattern Energy’s wind and solar projects.
Canada Pension Plan Investment Board (CPPIB) – CPPIB is a major investor in Pattern Energy with a stake of over $1 billion, focusing on the company’s wind farms in the Western United States.

Riverstone Holdings – Private equity firm Riverstone has partnered with Pattern Energy on multiple wind projects, investing hundreds of millions in equity.
Bank of America Merrill Lynch – The investment banking division of Bank of America has provided various forms of financing for Pattern Energy’s projects.

Pattern Energy forms joint ventures and partnerships for project investment, debt financing, and co-ownership of facilities. These partnerships allow the company to share risks and rewards of developing renewable energy projects.

Acquisitions & Divestitures

Pattern Energy has made several key acquisitions in recent years to expand its portfolio of renewable energy assets. In 2017, the company acquired the Meikle wind power facility from Peace River Wind LP, adding 179 megawatts of wind capacity in British Columbia. The company also purchased the Mont Sainte-Marguerite wind power project in Quebec, adding 147 megawatts of capacity.

The following year, Pattern Energy acquired a 90% interest in the 89 megawatt North Kent wind project in Ontario. The company also purchased the 112 megawatt Grady wind facility in New Mexico in 2018. These acquisitions have significantly increased Pattern Energy’s wind power generation capacity.

To streamline operations and raise capital, Pattern Energy has also divested some assets in recent years. In 2017, the company sold its minority interest in the K2 wind power facility. The following year, Pattern Energy divested its interest in the Gulf Wind facility in Texas. These divestitures have allowed the company to optimize its portfolio and redeploy capital into newer projects with high growth potential.

Financial Performance

Pattern Energy has seen steady growth in revenues and profits over the past several years. In 2018, the company reported $411 million in total revenue, up from $384 million in 2017. Net income was $99 million in 2018 compared to $28 million in 2017. Total assets also increased during this period, from $4.4 billion in 2017 to $4.6 billion in 2018.

The company has investment grade credit ratings of BBB- from S&P and Ba1 from Moody’s as of 2018. This indicates Pattern Energy has adequate capacity to meet its financial commitments.

Pattern Energy’s stock price has generally trended upwards since its IPO in 2013 at $22 per share. The stock hit an all-time high of $28.85 in 2014 before declining to a low of $18.58 in 2016. As of 2018, the share price recovered to around $25.

Leadership Team

Pattern Energy has assembled an experienced leadership team to guide the company’s growth and operations in renewable energy.

The executive team includes:

Mike Garland, CEO – Garland has over 30 years of renewable energy experience. He previously served as CEO of Pattern Development.

Esben Pedersen, CFO – Pedersen has 20+ years of finance experience including investment banking and capital markets. He joined Pattern Energy from Babcock & Brown.
Hunter Armistead, EVP of Business Development – Armistead has developed over 10,000 MW of renewable energy projects during his career. He previously led Pattern Development’s project origination team.

The Board of Directors includes experienced leaders from diverse backgrounds:

Alan Batkin, Chairman – Batkin has decades of investment banking experience and previously served as Vice Chairman of Edison International.
Patricia Bellinger – Bellinger is an executive with expertise in renewable energy project finance and development.
The Lord Browne of Madingley – Browne is the former CEO of BP and currently serves as Executive Chairman of L1 Energy.

Competitive Landscape

Pattern Energy operates in the competitive renewable energy industry alongside other major players like NextEra Energy, Orsted, Invenergy, and Clearway Energy. While smaller than titans like NextEra, Pattern Energy has established itself as a leading renewable energy company in North America focused specifically on wind and solar power.

As of 2021, Pattern Energy had an operating capacity of over 4 GW across 24 renewable energy facilities in the United States, Canada, and Japan. This is smaller than NextEra’s over 50 GW capacity but still sizable for a focused renewable energy company. Pattern has continued expanding, recently acquiring new solar projects in California and wind projects in New Mexico.

Pattern Energy differentiates itself by owning and operating assets over the long-term, rather than just developing projects. Its business model revolves around acquiring, financing, and operating renewable energy facilities to sell power under long-term contracts. This has allowed Pattern to grow its operating portfolio steadily over the past decade.

Overall, while smaller than utility giants, Pattern Energy has established itself as a major renewable energy owner/operator in North America. Its track record and continued expansion of wind and solar assets positions it well competitively in the industry going forward.

Future Outlook

Pattern Energy aims to continue expanding its renewable energy footprint in the coming years. The company sees significant growth opportunities as more jurisdictions implement policies to reduce greenhouse gas emissions and transition to clean energy. Pattern Energy plans to leverage its development capabilities and operational expertise to acquire additional renewable energy facilities.

Some key areas of growth potential for Pattern Energy include:

Developing new wind and solar projects in regions with strong renewable energy resources like the Western United States, Canada, Japan, and other countries.
Pursuing acquisitions of operating renewable energy assets to add to the company’s portfolio.
Expanding into emerging areas such as energy storage and green hydrogen production to support the transition to a carbon-free grid.

However, Pattern Energy also faces some challenges ahead. Potential headwinds include:

Intense competition from other renewable energy developers and operators.
The expiration of tax credits for renewable energy projects in some markets.

Obtaining permits and land rights for new projects.
Navigating evolving energy policies and electricity market dynamics.
Managing the integration of a growing amount of intermittent renewable energy onto the grid.

Overall, Pattern Energy is optimistic about the long-term growth trajectory for renewable energy and its competitive positioning. But the company must continue executing on its strategy while proactively addressing upcoming challenges and industry changes.