US-based utility-scale solar and solar-plus-energy storage developer Avantus is getting a new majority stakeholder with the global investment firm Kohlberg Kravis Roberts (KKR) coming on board. Along with the company's current institutional investor EIG, KKR has committed to invest more than $1 billion in the company.
Both equity investors, EIG and KKR, are now the sole equity investors in Avantus. They have committed a substantial development financing facility alongside their equity commitments, adding up to more than $1 billion in Avantus, which was originally called 8minute Solar Energy (see North America PV News Snippets).
Avantus counts a large solar project pipeline of 30 GW and 94 GWh of battery storage that it believes is enough to supply clean energy to 20 million people. It has so far developed and sold 6.5 GW solar and 6.3 GWh of storage projects.
This is the 1st US investment for KKR under its Global Climate Strategy. The firm has signed a definitive agreement to acquire the majority stake in Avantus. For Avantus, financial backing from one of the world's largest investment firms will help it expand significantly in the Western US as the country's renewables market benefits from 'material secular tailwinds.'
"To support an economy-wide energy transition, there is a need to significantly expand renewable energy generation by 2050 and enable grid electrification. Because of these tailwinds, we see enormous opportunity for Avantus," said Partner and Co-Head of Global Climate Strategy at KKR, Charlie Gailliot.
Once the transaction closes, KKR plans to create an equity ownership program for Avantus. It will enable all company employees to participate in the benefits of ownership of the company, it explains.
Not just in the US, KKR is expanding in the renewables market in Europe as well. It has made a takeover offer to Germany's independent power producer (IPP) Encavis with a total equity value of around €2.8 billion ($3 billion) (see Europe Solar PV News Snippets).
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