sPower Expands New York Portfolio Through 1-Gigawatt Acquisition
sPower has announced the acquisition of nine solar projects in New York from National Grid Renewables, boosting its renewable energy capacity by approximately 1 gigawatt (GWdc). Six of these projects are in the Article 10 permitting process and are set to begin operations between December 2022 and December 2023. This acquisition coincides with sPower's merger with AES's US clean energy development business, positioning the combined entity as a significant player in the renewable energy market with nearly 150 MWdc operating and over 1 GW development portfolio in New York.
- Acquisition of nine solar projects enhances sPower's capacity by approximately 1 GWdc.
- The merger with AES positions the company as a top renewable growth platform in the US.
- Expected economic benefits for local communities through job creation and renewable energy generation.
- Six of the nine projects are still in the permitting process, which could lead to delays.
- Uncertainty surrounding the completion of customary closing conditions for the merger.
SALT LAKE CITY--(BUSINESS WIRE)--sPower, a leading renewable energy Independent Power Producer (IPP), announced today the acquisition of nine solar projects in New York from National Grid Renewables, the renewable energy arm of National Grid's competitive, unregulated division. The portfolio includes projects in Franklin, Jefferson, Chautauqua, Lewis, and other counties across Upstate New York. This portfolio is estimated to have a 1-gigawatt (GWdc) capacity of renewable energy.
Six of the nine projects are currently in the early stages of the Article 10 permitting application process. The projects are expected to reach commercial operation between December of 2022 and December of 2023.
The news of this portfolio acquisition from National Grid Renewables comes as sPower announces a merger with The AES Corporation's (AES) US-based clean energy development business. sPower has been jointly-owned by AES and Alberta Investment Management Corporation (AIMco) since 2017. The AES-sPower transaction is expected to close in the next few months upon successful completion of customary closing conditions. AES Clean Energy will also include AES Distributed Energy and a wind development team formerly part of Advanced Energy. The merged business will represent one of the top renewable growth platforms in the country. In New York, the company will have a combined operating portfolio of nearly 150-megawatts (MWdc) and a more than 1-gigawatt development portfolio.
"Our merged renewables platform will bring together sPower and AES' differentiated capabilities in solar, wind, and energy storage. Through this platform, we look to accelerate the transition to a carbon-free future, a vision we share with New York State," said Leo Moreno, president of AES Clean Energy. "We are thrilled to further expand in New York and look forward to continuing to build a platform that is uniquely positioned to help the state realize its goal of 70 percent renewable energy by 2030."
"As one of the largest project-portfolio acquisitions in sPower's history, this is a tremendous feat. It was made possible through the hard work of our team and collaboration with National Grid Renewables," said Brian Callaway, Vice President of Structured Finance and M&A. "This transaction highlights our leadership in strategic acquisitions and partnerships as part of our holistic renewable energy development strategy."
The more than 1-gigawatt acquired portfolio will provide significant benefits to the region, including economic benefits for the local communities, counties, and State in the form of clean, renewable energy generation and economic development through construction, operations, and maintenance jobs, expenditures for supplies and materials, lease payments to participating landowners, and tax payments to local communities. sPower also intends to hire local Union Labor, whenever possible, throughout the portfolio's development.
"We are actively working to develop this portfolio in a way that benefits communities and allows for their input throughout the process," said Mike Farrell, sPower's New York-based Senior Manager of Solar Development. "As we move forward, we remain committed to local communities and developing the project portfolio in a way that is mutually beneficial."
About sPower:
Headquartered in Salt Lake City, Utah, with a regional office in Brooklyn, New York, sPower is a leading independent power producer (IPP) that owns and operates a wind, solar, and storage portfolio of nearly 2,000 megawatts. sPower is owned by a joint venture partnership between The AES Corporation (NYSE: AES), a Fortune 500 global power company, and the Alberta Investment Management Corporation (AIMCo), one of Canada's largest and most diversified institutional investment managers. For more information about sPower in New York, visit www.spower.com/ny.
About AES:
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com/even-better-together/.
About National Grid Renewables:
National Grid Renewables, part of the competitive, unregulated National Grid Ventures division of National Grid (NYSE: NGG), develops, owns and operates large-scale renewable energy assets across the United States, including solar, wind and battery storage. As a farmer-friendly and community-focused business, National Grid Renewables develops projects for corporations and utilities that seek to repower America's electricity grid by reigniting local economies and reinvesting in a sustainable, clean energy future.
National Grid Renewables has a robust development pipeline of wind, solar and battery storage projects in various stages of development throughout the United States, as well as geographically diverse operational assets across the country. It supports National Grid's vision of being at the heart of a clean, fair and affordable energy future for all. Please visit www.nationalgridrenewables.com to learn more.
