LS Power Boosts Wind, Solar, Storage, RNG Portfolio With US$2.5 Billion Deal

LS Power, a development, investment, and operating company focused on the North American power and energy infrastructure sector, announced it has reached an agreement with Algonquin Power & Utilities Corp. to acquire its renewable energy business (The Renewables Business) for an estimated US$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 GW of generating capacity and an 8 GW pipeline of wind, solar, battery energy storage, and renewable natural gas projects in various stages of development.

Approximately 2.7 GW of the portfolio’s assets are located in the US across NYISO, MISO, PJM, ERCOT, and CAISO markets, with the remaining 300 MW located in Canada.

“This represents a significant strategic investment in and expansion of LS Power’s renewable energy portfolio,” said Paul Segal, chief executive officer of LS Power. “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.”

The Renewables Business will join LS Power’s existing portfolio of energy transition platforms, including:

• REV Renewables, a renewable generation and energy storage company
• EVgo, a fast-charging network for electric vehicles, powered by 100% renewable energy
• CPower Energy Management, a 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 waste-to-renewable natural gas development and operating platform
• Endurant Energy, a provider of distributed energy infrastructure
• LS Power Transmission, a private transmission owner and developer with over 780 miles (1,255 km) of high-voltage transmission lines operating and over 350 miles (563 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 expected to close in Q4 2024 or Q1 2025 and is subject to the satisfaction of customary closing conditions, including the approval of the US Federal Energy Regulatory Commission and approval under applicable competition laws.

Milbank LLP is serving as legal advisor and Scotiabank and BMO Capital Markets Corp. are serving as financial advisors to LS Power on the acquisition.