Engie has acquired two US solar and storage projects with a combined capacity of 1250MW from Revolve Renewable Power.
The sales of the 250MW Parker Solar and Storage Project and the 1000MW Bouse Solar and Storage Project, both in Arizona, was completed pursuant to a share purchase agreement dated 10 January 2023.
The transaction includes an upfront payment of US$2m (€1.86m), inclusive of the reimbursement of development costs, which has been paid on completion.
The remaining consideration is linked to each of the projects successfully completing further interconnection studies and the issuance by Engie of a Notice To Proceed construction works to the applicable EPC contractor.
It is also contingent on the commissioning date, with such date being the date that a project has been synchronized to the grid and is capable of delivering all of its installed capacity to the grid.
The first of these milestones is expected to be achieved in 2023 when further interconnection studies are issued.
On completion of the transaction, Engie acquired 100% of the shares in Revolve Renewable AZ LLC and Revolve Parker Solar LLC on a cash and debt free basis.
Engie will be responsible for the further development of the projects including all future development costs and other financial liabilities.
As part of the transaction the parties have entered into a put option agreement allowing Engie to sell the projects back to the company for a limited period following receipt of the results of the next interconnection studies due for each project.
Should Engie exercise this put option, the company will repurchase the respective project, while also refunding the French developer for any development expenses incurred or reimbursed.
Revolve chief executive Steve Dalton said: “We are delighted to announce the sale of our Bouse and Parker solar & storage projects to Engie.
“This is a significant transaction for the company and marks the sale of our first utility scale projects from our US development portfolio.
“It successfully demonstrates our development approach as well as our strategy in working with experienced utility partners to deliver significant returns for our shareholders.
“The transaction will also provide the company with additional resources to advance its remaining development portfolio, while also evaluating opportunities to add further greenfield project opportunities to its active development portfolio in the near term.
“We look forward to continuing to supporting the team at Engie in developing the projects to a construction ready stage.”