LS Power has finalised an agreement with Algonquin Power & Utilities Corp. to acquire its renewable energy division. The Renewables Business spread across US and Canada, includes 3,000 MW of operating wind and solar assets, along with an 8,000 MW pipeline of wind, solar, battery energy storage, and renewable natural gas projects at various stages of development. This deal does not include the company’s hydropower assets.
Around 2,700 MW of the portfolio’s assets are situated in the US, across the NYISO, MISO, PJM, ERCOT, and CAISO market. The remaining 300 MW is located in Canada. The Renewables Business will be integrated into LS Power’s existing portfolio of energy transition platforms, which include: REV Renewables, EVgo, CPower Energy Management, Rise Light & Power, Primary Renewable Fuels, Endurant Energy, LS Power Transmission, LS Power Generation.
The estimated value of the deal is $2.5 billion and it is anticipated to close in Q4 2024 or Q1 2025, pending the fulfilment of customary closing conditions, including approval from the US Federal Energy Regulatory Commission and clearance under relevant competition laws.
REGlobal’s Views: This move comes as Algonquin makes efforts to reduce its debt and grow its regulated utility business, and have stronger balance sheets. Further, for LS Power, this deal will help the IPP to significantly expand its portfolio across the continent.
