Sempra Energy closes USD-1.6bn sale of renewables to Con Edison

Sempra Energy (NYSE:SRE) said on Thursday it has concluded the sale of a roughly 980-MW renewables portfolio to Consolidated Edison Inc (NYSE:ED), or Con Edison, for about USD 1.6 billion (EUR 1.41bn) in cash.

The sale includes the 100-MW Mesquite Solar 2 and 150-MW Mesquite Solar 3 in Arizona; the 58-MW Copper Mountain Solar 1 and 94-MW Copper Mountain Solar 4 in Nevada; the 200-MW Great Valley Solar in California; and certain solar and battery storage development projects.

Also, it covers Sempra’s partial interest in the 150-MW Mesquite Solar 1; the 150-MW Copper Mountain Solar 2 and 250-MW Copper Mountain Solar 3; the Alpaugh, Corcoran and White River solar facilities in California, together representing 110 MW; and the 75-MW Broken Bow II wind facility in Nebraska. Those assets were co-owned with Con Edison Clean Energy Businesses.

The San Diego-based energy services holding company sold the portfolio as part of its portfolio optimisation programme, which also includes an ongoing sales process covering US wind and some non-utility midstream natural gas assets. Sempra Energy said it will use the sale proceeds to grow its regulated Texas utility by acquiring transmission assets owner InfraREIT Inc (NYSE:HIFR) through Oncor Electric Delivery Company LLC. A portion will also be directed towards paying down debt.

Separately, Con Edison said that the acquisition makes it the second largest solar power producer in North America and expands the Con Edison Clean Energy Businesses’ renewables portfolio to 2,600 MW, with assets in 17 states.

(USD 1.0 = EUR 0.881)

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