Hanwha Convergence USA’s Post

$15bn in Divestments Since 2023: Analyze North American Utilities' Renewables Strategy, with Enerdatics Since early 2023, major US utilities like Duke Energy, American Electric Power, and Algonquin Power & Utilities Corp. have sold off significant renewable assets, with Iberdrola and Pacific Gas and Electric Company following suit. But why sell renewables in the US? 💡 Unlocking Value: These utilities believe the full value of these assets isn't being realized under their current structure. The sale of these assets allows them to secure handsome multiples, improving their creditworthiness and financial flexibility for future investments. 🔧 Streamlining Operations: Selling these assets enables utilities to transform into pure-play regulated entities. This shift simplifies their structure, allowing them to focus on lower-risk, regulated investment opportunities with enhanced operational efficiency and capital discipline. 💸 Funding Billion-Dollar Investment Plans: Proceeds from these transactions are earmarked for massive investment plans, with a significant portion directed toward grid investments in the US. #RenewableEnergy #Utilities #EnergyTransition #InvestmentStrategy #Divestment #SustainableFinance #GridInfrastructure #EnergyMarket #AssetManagement #Enerdatics #CleanEnergy #EnergyInnovation

Exus Management Partners buys 306MW wind portfolio in US for repowering, at an estimated enterprise value of ~$260mn 🔍 Enerdatics estimates the enterprise value of this transaction at ~$260mn, representing a deal multiple of ~$0.85mn/MW. Asset details 🌬️ The transaction involves the acquisition of four wind projects in the PJM region from Vitol and Oppidum Green Energy. Three wind farms with a combined capacity of 167 MW will be repowered within the next three years, while the fourth is expected to be repowered by the end of this year. 📈 Three projects have a 4-year PPA with Shell-owned power retailer Inspire Clean Energy, signed in 2023. The repowering is estimated to increase the nameplate capacity of the wind farms by as much as 25%. Deal valuation 💡 Enerdatics' analysis is based on precedent deals like Ecofin's acquisition of Whirlwind wind farm ($0.81mn/MW) and considers the repowering horizon, which we believe exerts upward price pressure on the valuation. 🔎Meanwhile, utility PPA-backed wind farms with over 10 years of remaining contracted life have been transacted at higher multiples. Examples include Clearway's 2021 buy of a 413 MW portfolio in Texas at $1mn/MW, and Innergex's 2022 acquisition of a 37.75% stake in Idaho wind farms at $0.91mn/MW. #RenewableEnergy #WindEnergy #Sustainability #Investment #EnergyTransition #Exus #PJM #PPA #Repowering #CleanEnergy #GreenTech

VPP giant Uplight already at the 10 GW mark One of the companies we spoke to inform our recent Virtual Power Plant (VPP) report was Uplight. This Colorado-based company is big, perhaps the biggest VPP operation out there, with over 700 employees. “What we produce is white-labelled tools which utilities buy and use” explains Donald McPhail, Uplight’s Vice President, Business General Manager in Energy & Decarbonization. Uplight acquired AutoGrid in February – supporting Uplight’s customer-end software with Autogrid’s expertise in energy management. “We’re looking at massive growth, and both Uplight and Autogrid are on the leaderboard of Distributed Energy Resource Management Systems (DERMS),” McPhail states. At time of speaking, which was a few months ago now so the numbers will have grown since, Uplight and Autogrid combined had a lot of big customers and market presence – serving Shell and TotalEnergies, with activities in seventeen countries – while managing a fleet of flexible resources which came to 8.4 GW in January. #virtualpowerplants #VPPs #renewables

Valuation Premium! Analyze EDPR's $2.2mn/MW Wind Divestment in Europe, announced at a Significantly Above-Market Deal Multiple🌟 Enerdatics data reveals that EDP Renewables’ last four onshore wind asset sales in Europe achieved multiples between $2.2mn to $2.85mn per MW—significantly above the median for similar transactions in Europe during the respective years. 🔍 Strategic Sales: EDPR is capitalizing on newly operational assets in high-growth markets like Poland, Italy, and Portugal, where investor interest is rapidly rising, to command premiums. 📈 Recent Success: EDPR's latest divestment under the Asset Rotation Program involved a 191 MW wind portfolio in Italy, sold for an enterprise value of $428mn. The portfolio included seven wind farms, primarily contracted under CfD, with an average operational maturity of 1.4 years. #RenewableEnergy #WindPower #CleanEnergy #SustainableInvesting #EnergyTransition #EDPRenewables #WindEnergy #AssetDivestment #EnergyMarkets #GreenEnergy #HighGrowthMarkets #InvestInRenewables #RenewableEnergyNews #SustainableFuture #EnergyInnovation

🌞 HASI & AES Expand Partnership with Key Solar Acquisition 🔋 Portfolio Insight: Hannon Amstrong (HASI) acquires a stake in a 605 MW solar portfolio across the US, featuring over 200 operational renewable energy projects. This diverse mix predominantly includes community and commercial & industrial solar assets. 🔌 Enhanced with Storage: Impressively, over a third of this portfolio's capacity is paired with battery energy storage, enabling a reliable, 24/7 power supply for customers. 💰 Stable Revenue: The portfolio boasts a robust revenue stream, underpinned by contracts with mainly investment-grade corporate, utility, and municipal off-takers. These agreements have an average remaining life of 16 years, ensuring long-term financial stability. 🤝 Deepening Ties: This acquisition marks a significant step in HASI and The AES Corporation's six-year collaboration, following HASI's recent investment in a 1.3-GW portfolio of solar and wind projects. This history of successful partnerships underscores the strategic nature of this deal. 🚀 Growth Trajectory: This move is a key part of HASI's ambitious plan to expand its US portfolio by approximately 500 GW over the next 6 years, involving an investment of around $1 trillion. The company’s collaborations with other major US firms like Clearway, ENGIE, and Ameresco are pivotal in driving this growth. #HASI #AES #SolarEnergy #RenewableEnergy #SolarAcquisition #EnergyStorage #SustainableInvesting #RenewableProjects #CleanEnergy #UtilitySector #EnergyTransition

🔋 | ICYMI the news this week:     🔌 Multinational utility RWE announced the completion of two BESS projects in Texas and one in Arizona this week, totaling 190MW/360MWh, with another 2GWh-plus under construction.   ⚡️ The first energy storage asset built using Wärtsilä’s new Quantum High Energy BESS solution will be a 300MW/600MWh project in Scotland, UK.   💡 Greece’s Regulatory Authority (RAE) has selected 48 projects with a combined capacity of over 1.5 GW as provisional winners in its second tender for battery energy storage capacity.   📈 Great Britain, Italy, and Ireland are the top three markets for battery storage investment within Europe, latest findings from Aurora Energy Research reveal.   💰 Renewable energy company Arevon Energy Inc has secured USD 350 million (EUR 324.8m), with the assistance of a unit of US investment giant Blackstone Inc, to advance a 200-MW/800-MWh energy storage project in Grand Terrace, California.   #cleanenergy #sustainableenergy #renewables #batterystorage #energytransition #electrification #climatechange #sustainability #greenenergy #futureofenergy   💡 prompted by Nardac, ⚡ powered by Gemini.

ENGIE was recently named the top corporate seller of clean power purchase agreements (PPAs) globally in what was a record year for PPAs, according to BloombergNEF’s (BNEF) 2023 full year rankings. According to the report, corporations publicly announced a record 46 gigawatts (GW) of #solar and #wind contracts in 2023, a 12% increase from 2022. The U.S. remained the largest market for PPAs with 17.3GW of deals announced.   As PPAs increasingly become the centerpiece of companies’ #sustainability strategies, ENGIE sees continued strong growth in U.S. #renewables to support our #customers. We currently have 7 GW of solar, wind and #batterystorage projects in North America and that number is growing.   “Our strong customer focus combined with our #safe, expert project delivery is at the heart of our growth in the U.S.,” says @David Carroll, Chief Renewables Officer and Senior VP, North America Region. “Our reputation for consistently delivering projects that enable our customers to meet their public commitments with confidence is key. Customers value our track record of delivering projects on-time, on-spec and on-budget. We do this by leveraging our global scale and integrated model complemented by our energy expertise and local presence.”   Learn how our ENGIE #energyexperts are powering U.S. renewables growth here >> https://lnkd.in/gJUKDsP4 Dave Carroll / Prathima Sundar / Laura Caspari #WithENGIE #CleanEnergy #Renewable #NetZeroFuture #EnergyNews #EmployerofChoice #EnergyJobs #EnergyLeader #WindEnergy #SolarEnergy #ThoughtLeadership #FutureisNow #EnergyTransition

💵 AEP Joins Duke Energy and Con Edison in Exiting Renewable Generation in US Deregulated Markets American Electric Power (AEP) is selling its distributed resources business, AEP OnSite Partners, to Basalt Infrastructure Partners for ~$315mn. Post-sale, AEP's operations in the deregulated markets will be focussed solely on retail energy to meet rising demand. 🔋 Portfolio Highlights: – 300 MW of renewable capacity across nearly 100 US sites – 253.6 MW of solar assets, with the rest comprising batteries, fuel cells, etc. – Key markets: Ohio, Minnesota, New Mexico, Connecticut, New York 🚀 Utilities’ Exit from Deregulated Markets: – Since 2023, many US utilities have announced plans to sell unregulated renewables portfolios. – Increased competition following the IRA's passage is driving this trend. – Utilities are refocusing investments on core, regulated businesses, particularly transmission assets. 📄 Recent Major Deals: – AEP's sale of a 1.36 GW portfolio to Invenergy-led consortium for $1.5bn – Duke Energy's divestment of utility-scale business to Brookfield for $2.8bn – Duke Energy's sale of commercial distributed business to ArcLight for $364mn – Con Edison’s sale of Clean Energy Businesses to RWE for $6.8bn – Recently, PG&E and Algonquin have also announced plans to sell their renewable generation businesses in the deregulated markets. #RenewableEnergy #Utility #SolarPower #EnergyTransition #InfrastructureInvestment #RenewableAssets #EnergySector

Investment firm Quantum Capital Group has agreed to acquire US independent power producer Cogentrix Energy, LLC with a commitment to expand its platform with a focus on gas-fired power generation, #renewables and #batterystorage. The targeted business will be acquired from US private equity firm Carlyle (NASDAQ:CG) for about USD 3 billion (EUR 2.76bn), a press statement said today. Charlotte, North Carolina-based Cogentrix specialises in acquiring, building, managing and optimising conventional and renewable power generation assets, including gas, wind, solar, hydro and coal projects in the US. Its current platform comprises 11 natural gas-fired power plants with a combined capacity of 5.3 GW across the country. “Having stewarded more than 18 gigawatts of assets over its 40+ year history, the company is a proven leader in building, managing and optimising power generation assets of all technology types. We expect to meaningfully grow the Cogentrix platform, with a focus on gas-fired power generation, renewables and battery storage. Our goal is to deliver clean, reliable, and affordable power to customers,” said Michael MacDougall, Partner at Quantum. The deal hinges on customary regulatory approvals and is expected to close between the fourth quarter of 2024 and the first quarter of 2025. https://lnkd.in/dqMjfh2y