LS Power, a prominent company in the development, investment, and operations within the North American energy and power infrastructure sector, has announced its agreement to purchase the renewable energy business from Algonquin Power & Utilities Corp. (AQN).
Assets Included in the Acquisition
The renewable energy division being acquired consists primarily of wind and solar assets located across the United States and Canada.
This portfolio includes 44 operational assets, contributing over 3000 MW of generating capacity, along with an 8000 MW pipeline of projects in various stages of development.
These projects span wind, solar, battery energy storage, and renewable natural gas.
Out of the total capacity, around 2700 MW of the assets are situated within the United States, distributed across markets such as NYISO, MISO, PJM, ERCOT, and CAISO, while the remaining 300 MW are based in Canada.
Strategic Significance of the Acquisition
“This acquisition represents a crucial strategic investment and expansion of LS Power’s renewable energy portfolio,” stated Paul Segal, CEO of LS Power. “These assets will enhance our existing portfolio of over 19,000 MW, which includes top-performing renewable energy, energy storage, flexible gas, and renewable fuels projects. We believe that this platform will be instrumental in addressing the challenges of increasing electric demand and advancing the energy transition.”
Integration into LS Power’s Existing Platforms
The newly acquired renewables business will be integrated into LS Power’s diverse portfolio of energy transition platforms, which includes:
- REV Renewables: A leader in renewable energy generation and energy storage solutions.
- EVgo: A fast-charging network for electric vehicles powered entirely by renewable energy.
- CPower Energy Management: A prominent provider of distributed energy resource monetization and virtual power plant services nationwide.
- Rise Light & Power: The largest energy generator and clean energy infrastructure developer in New York City, focusing on battery storage and offshore wind interconnection.
- Primary Renewable Fuels: A leading platform for the development and operation of waste-to-renewable natural gas projects.
- Endurant Energy: A provider of distributed energy infrastructure solutions.
- LS Power Transmission: A key private transmission owner and developer, managing over 780 miles of high-voltage transmission lines, with an additional 350+ miles and multiple substations under development or construction.
- LS Power Generation: A large-scale dispatchable generation platform that offers energy, reliability, and flexibility to the grid.
Transaction Timeline and Conditions
The transaction is anticipated to close in the fourth quarter of 2024 or the first quarter of 2025.
It is subject to the satisfaction of standard closing conditions, including approval from the U.S. Federal Energy Regulatory Commission and under applicable competition laws.
Advisors Involved
Milbank LLP is serving as the legal advisor, while Scotiabank and BMO Capital Markets Corp. are acting as financial advisors to LS Power for this acquisition.