Algonquin Power & Utilities has agreed to sell its renewable energy business to LS Power for up to $2.5 billion.
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 3,000 megawatts (MW) of generating capacity and an 8,000 MW pipeline of wind, solar, battery energy storage and renewable natural gas projects in various stages of development.
Approximately 2,700 MW of the portfolio’s assets are located in the U.S., across NYISO, MISO, PJM, ERCOT and CAISO markets, with the remaining 300 MW located in Canada.
Paul Segal, CEO of LS Power, said: “This business complements our existing fleet of more than 19,000 MW of top-performing renewable, energy storage, flexible gas and renewable fuels projects.”
LS Power’s existing portfolio
REV Renewables, a leader in renewable generation and energy storage
EVgo, a fast-charging network for electric vehicles, powered by 100% renewable energy
CPower Energy Management, a leading, national distributed energy resource monetization and virtual power plant services business
Rise Light & Power, New York City’s largest generator and developer of clean energy infrastructure including battery storage and offshore wind interconnection
Primary Renewable Fuels, a leading waste-to-renewable natural gas development and operating platform
Endurant Energy, a provider of distributed energy infrastructure
LS Power Transmission, a leading private transmission owner and developer with 780+ miles of high-voltage transmission lines operating and 350+ miles and multiple substations under development or construction
LS Power Generation, a large scale dispatchable generation platform providing energy, reliability and flexibility to the grid
The transaction is expected to close in Q4 2024 or Q1 2025 subject to customary closing conditions, including the approval of the U.S. Federal Energy Regulatory Commission and approval under applicable competition laws.
Chris Huskilson, CEO of AQN, said: “This major milestone, coupled with our agreement to support the sale of our Atlantica shares, delivers on our plan to transform AQN into a pure play regulated utility, optimize our regulated business activities, strengthen our balance sheet, and enhance our quality of earnings.”