- Algonquin Power & Utilities Corp. (TSX:AQN) signed an agreement to sell its renewable energy business to LS Power
- The portfolio includes 44 operating assets, capable of more than 3,000 megawatts (MW) of generating capacity
- The business also includes an extensive development pipeline of approximately 8,000 MW, featuring wind, solar, battery energy storage and renewable natural gas projects at various stages of development
- Algonquin Power & Utilities Corp. last traded at C$7.80 per share
Algonquin Power & Utilities Corp. (TSX:AQN) signed an agreement to sell its renewable energy business to LS Power.
The leading Canadian utility company will divest its asset to this development, investment and operating firm that is focused on North American power and energy infrastructure.
The renewables business being acquired by LS Power is composed primarily of wind and solar assets distributed across the United States and Canada. The portfolio includes 44 operating assets, capable of more than 3,000 megawatts (MW) of generating capacity. The business also includes an extensive development pipeline of approximately 8,000 MW, featuring wind, solar, battery energy storage and renewable natural gas projects at various stages of development.
Out of the total portfolio, around 2,700 MW of the assets are in the United States, spanning key markets such as NYISO in New York, ERCOT in Texas and CAISO in California. The remaining 300 MW are based in Canada, further strengthening LS Power’s presence in the North American renewable energy sector.
LS Power’s CEO, Paul Segal, highlighted the importance of this acquisition in a news release, saying, “This represents a significant strategic investment in and expansion of LS Powers’ renewable energy portfolio. This business complements our existing fleet of more than 19,000 MW of top-performing renewable, energy storage, flexible gas, and renewable fuels projects. We believe this platform will play a significant role in meeting the challenges of rising electric demand and advancing the energy transition.”
Once complete, the renewables business will integrate into LS Power’s portfolio of energy transition platforms, which include:
- REV Renewables: Renewable generation and energy storage.
- EVgo: A fast-charging network for electric vehicles powered by 100 per cent renewable energy.
- CPower Energy Management: A national provider of distributed energy resource monetization and virtual power plant services.
- Rise Light & Power: New York City’s largest generator and developer of clean energy infrastructure, including battery storage and offshore wind interconnection.
- LS Power Transmission: A private transmission owner and developer with more than 1,255 km of high-voltage transmission lines operating and more than 350 km 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 anticipated to close in either Q4 2024 or Q1 2025, pending the satisfaction of customary closing conditions. These include approval from the U.S. Federal Energy Regulatory Commission and relevant competition authorities.
LS Power is a development, investment and operating company focused on the North American power and energy infrastructure sector, with platforms across generation, transmission and energy transition solutions. LS Power has developed or acquired 47,000 MW of power generation.
Algonquin Power & Utilities Corp. is an Oakville, Ontario-based renewable energy and regulated utility conglomerate that provides sustainable energy and water solutions through its portfolio of electric generation, transmission and distribution utility investments to more than 1 million customer connections, mostly in the United States and Canada. The company is engaged in renewable energy through its portfolio of long-term contracted wind, solar and hydroelectric generating facilities.
Algonquin Power & Utilities Corp. (TSX:AQN) last traded at C$7.80 per share. Algonquin stock is down 8.41 per cent over the past week.
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(Top photo of a windmill turbine: Algonquin Power & Utilities Corp.)