US-based LS Power has reached an agreement with Algonquin Power & Utilities to acquire its renewable energy business.
The renewables business is comprised largely of wind and solar assets located throughout the United States and Canada, including 44 operating assets with more than 3000MW of generating capacity.
The operation also has 8000MW pipeline of wind, solar, battery energy storage and renewable natural gas projects in various stages of development.
Approximately 2700MW of the portfolio’s assets are located in the US, across NYISO, MISO, PJM, ERCOT and CAISO markets, with the remaining 300MW located in Canada.
Paul Segal, chief executive of LS Power, said: “This represents a significant strategic investment in and expansion of LS Power’s renewable energy portfolio.
“This business complements our existing fleet of more than 19,000MW of top-performing renewable, energy storage, flexible gas and renewable fuels projects.
“We believe this platform will play a significant role in meeting the challenges of rising electric demand and advancing the energy transition.”
The Renewables Business will join LS Power’s existing portfolio of energy transition platforms, including REV Renewables, a leader in renewable generation and energy storage; andRise Light & Power, New York City’s largest generator and developer of clean energy infrastructure including battery storage and offshore wind interconnection
The transaction is expected to close in Q4 2024 or Q1 2025 and is subject to the satisfaction of customary closing conditions, including the approval of the US Federal Energy Regulatory Commission and approval under applicable competition laws.
Milbank is serving as legal advisor and Scotiabank and BMO Capital Markets are serving as financial advisors to LS Power on the acquisition.