US climate solutions investor Hannon Armstrong Sustainable Infrastructure Capital (HASI) will make a common equity investment to acquire a minority stake in a portfolio of approximately 1.3 GW of operational solar and wind energy projects of The AES Corporation.
The project portfolio comprises 17 operational solar PV and 1 wind energy facility located across Arizona, California, New York, South Dakota, Utah and Virginia. Additionally, it is also financing land owned by AEA for a solar project and a standalone battery energy storage system (BESS) in California. HASI will hold 49% of the project portfolio.
"These senior-level land financing and common equity transactions with AES are a great example of how we help solve the multiple investment needs of our clients, all transacted with an integrated team," said Managing Director of Hannon Armstrong, Manny Haile-Mariam.
Projects covered under the arrangement have close to 18 years of a weighted average remaining contract life, contracted with corporate, utility and municipal off-takers.
For AES, this "investment creates an opportunity to expand our development of renewable energy projects, growing our portfolio of wind, solar and battery energy storage facilities across the US," stated AES Clean Energy President Leo Moreno.
The company counts its US development pipeline as adding up to 51 GW. In June 2022, AES joined Clearway Energy Group, Cypress Creek Renewables and DE Shaw Renewable Investments (DESRI) to source up to 7 GW of domestically produced solar modules annually starting from 2024 (see Consortium Looking For US Made Modules).