For $1.5 billion, Scout Clean Energy and Standard Solar, two US-based renewable energy companies, will be purchased by Brookfield Renewable and its institutional partners. As part of the agreement, Brookfield Renewable will purchase Scout Clean Energy for $1 billion. Additionally, it has committed to invest an additional $350 million to help Scout’s business development initiatives. Scout’s portfolio includes over 1,200 MW of operating wind assets, including 400 MW managed on behalf of third parties. It has a pipeline of over 22,000 MW of wind, solar and storage projects across 24 states, including almost 2,500 MW of under construction and advanced-stage projects.
With the potential to invest a further $160 million to support the company’s growth initiatives, Brookfield Renewable will pay a consideration of $540 million for the acquisition of Standard Solar. With end-to-end development skills, Standard Solar owns and manages commercial and community distributed solar projects in the US. It has a pipeline of about 2 GW and about 500 MW of capacity spread across contractual assets that are operational and under construction.
Reportedly, the two investments will be made through the Brookfield Global Transition Fund I, which supports renewable energy. Within its US platform, Scout and Standard Solar will continue to operate as distinct commercial entities. Brookfield Renewable, a division of Brookfield Asset Management, currently has 24 GW of installed capacity and 100 GW in development.
REGlobal’s Views: Acquisitions continue to be a popular route for large renewable energy companies like Brookfield Renewable to quickly expand their portfolios. The company has been on a massive expansion route, and in the beginning of this year itself, the company acquired one more company in the North American clean energy space – the solar and battery storage developer Urban Grid for $650 million.
