Brookfield Renewable and its institutional partners are to acquire a distributed generation development platform from Exelon Generation Company comprising 360MW of operating solar in the US, and a further 700MW under development, for $810m.
The operating portfolio covers nearly 600 sites throughout the country, Brookfield said.
It added that the transaction represents an opportunity to acquire a “high-quality operating portfolio with a strong development pipeline of advanced-stage projects and a dedicated power purchase agreement origination team with a consistent track record of delivering high value projects to customers”.
The portfolio is contracted under long-term PPAs, and Brookfield Renewable intends to leverage its scale, and operating and commercial capabilities to drive additional value, the company said.
The deal is subject to customary closing conditions and is expected to close in the first half of 2021.
Brookfield Renewable chief executive Connor Teskey (pictured) said: “We entered the distributed generation space in 2017, as we identified a significant opportunity to build a high-quality scale business in a rapidly growing market.
“Since then, we have expanded the business as cost declines in solar technology and decarbonisation ambitions from commercial and industrial clients accelerated.
“Today, we are owners of one of the leading distributed generation businesses in the US, with deep operating, development and origination capabilities, and an approximately 2000MW portfolio that generates high-quality contracted cash flows that are diversified by geography and customer.
“This investment represents the continuation of this strategy and furthers our goal of partnering with corporates and other institutions to help them achieve their decarbonisation objectives.”