German energy major RWE AG (ETR:RWE) is set to almost double the business of its renewable energy arm in the US with an agreement to acquire the clean energy operations of New York-based energy products and services provider Consolidated Edison Inc (NYSE:ED) at an enterprise value of USD 6.8 billion (EUR 6.92bn).
Upon completion of the purchase, RWE’s renewables operating asset base in the US will grow to 7.2 GW, with a project pipeline of more than 24 GW in onshore wind, solar and batteries.
The deal concerns Valhalla, New York-based Con Edison Clean Energy Businesses Inc (Con Edison CEB), an operator and developer of renewable energy plants in the US. The business has about 3 GW of operating capacity, thereof 90% in solar energy, and over 7 GW of projects under development.
The investment, which is carried out through RWE Renewables Americas LLC, comes in line with the German group’s growth ambitions in the US. It is expected to turn RWE into the number four renewable energy company and the second largest solar operator in the country, the company said in a press release.
RWE had already allocated up to EUR 15 billion gross for investment in the US as part of its Growing Green strategy, which calls for gross investments of EUR 50 billion around the world by the end of the decade. The German energy company has more than 30 projects in operation in the US, with a total installed generation capacity of 4.1 GW.
As for Con Edison, the divestment will allow the company to sharply focus on its core utility businesses and the investments needed to lead New York's ambitious clean energy transition, CEO Timothy Cawley noted in a separate statement.
In February, Con Edison said that it is considering strategic alternatives with respect to its clean energy businesses unit, which through its subsidiaries, develops, owns and operates renewable and sustainable energy infrastructure projects and provides energy-related products and services to wholesale and retail customers.
Media speculation about Con Edison CEB being up for sale started earlier in 2022. The business was said to have grabbed the eye of various companies, including RWE, French oil and gas giant TotalEnergies SE and US private equity firm Global Infrastructure Partners (GIP), according to a Bloomberg report from August.
(USD 1 = EUR 1.018)
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RWE Renewables’ Hickory Park Solar project in Georgia. Source: RWE Renewables.
