Utilities AEP, PNM sell New Mexico solar assets for $230 million

New Mexico Renewable Development (NMRD), a renewables joint venture (JV) between American Electric Power (AEP) and PNM Resources (PNM), will be sold to Exus North America for $230 million. Through this deal, AEP and PNM will sell their 50 per cent stakes in NMRD, which consists of 15 solar projects totaling 625 MW in capacity.

The NMRD portfolio consists of nine operational projects totaling 185 MW and six under-development projects totaling 440 MW. In June 2023, AEP started the process of selling NMRD, and KeyBanc Capital Markets and Foley & Lardner provided financial and legal counsel for the deal, respectively. This divestment now awaits regulatory approvals, with completion due in February 2024. Each of AEP and PNM will receive $115 million from the gross revenues. PNM will utilise its share of the proceeds to facilitate regulated capital investments.

In August 2023, AEP sold its 1.3 GW unregulated renewables portfolio to IRG Acquisition Holdings (IRGAH), a partnership between Invenergy, CDPQ and funds managed by Blackstone Infrastructure Partners. The portfolio, sold for $1.5 billion, has 14 projects, including 1.2 GW of wind and 165 MW of solar.