Enbridge has acquired Tri Global Energy (TGE), a US renewable project developer, for $270 million in cash and assumed debt.
In addition, up to approximately $50 million in payments could be made contingent on successful execution of TGE’s project portfolio.
TGE is currently the third largest onshore wind developer in the US, with a development portfolio of wind and solar projects representing more than 7GW of renewable generation capacity.
Enbridge expects North American renewable power fundamentals to remain robust. Rising targets for state renewable portfolio standards and growing private sector demand for zero carbon electricity are set to drive investment in wind and solar power generation significantly higher in the next decade.
TGE’s large development portfolio includes 3.9 GW of renewable generation projects TGE previously sold to operators, which will generate development fees and accretion to distributable cashflow per share in the first year following the acquisition of TGE.
In addition, 3GW of late-stage development of wholly owned projects are expected to be placed into service between 2024 and 2028, providing a visible ramp up in cash flows along with a large slate of further projects in earlier stage development beyond that period.
“TGE will enhance Enbridge’s renewable platform and accelerate our North American growth strategy,” said Enbridge President and CEO Al Monaco.
“TGE’s significant development pipeline, coupled with our renewable capabilities, and existing self-power opportunities, make this a truly synergistic investment that further positions us to grow organically at attractive equity returns. We’re excited to be welcoming the TGE team to Enbridge, further strengthening our capabilities as we ramp up our renewable business.”