- EDP Renewables North America has acquired 85% stake in C2 Energy Capital’s distributed solar energy platform C2 Omega LLC
- To be headed by Miguel Angel Prado as the CEO, the new entity EDPR NA Distributed Generation LLC will exclusively provide small-scale downstream generation and energy efficiency services in the US
- The $119 million deal gives EDPR access to 89 MW of operational and imminent completion capacity and a near term pipeline of around 120 MW
Utility scale solar and wind farm developer EDP Renewables North America LLC has ventured into the distributed solar generation space by picking up a 85% stake in US based commercial and industrial (C&I) distributed solar power company C2 Omega LLC. The deal is expected to close in Q1/2021.
The new company will be called EDPR NA Distributed Generation LLC (EDPR NA DG) and will exclusively provide small-scale downstream generation and energy efficiency services in the US. It will be led by Miguel Angel Prado as the CEO. EDPR is the renewables arm of Portuguese utility EDP.
The value of the transaction is pegged at approximately $119 million. “The transaction will also include certain earn-out payments based on the growth in future operational capacity,” added EDPR.
The acquisition in the distributed solar platform of C2 Energy Capital brings to EDPR 89 MW of operational and imminent completion capacity and a near term pipeline of around 120 MW. This is spread across some 200 sites in 16 states.
EDPR says this move makes it an operator of one of the largest commercial and industrial distributed generation portfolios in the US as its forays into a ‘rapidly growing market’.
“With this acquisition EDPR and C2 together will develop the distributed generation segment, broaden competitive solutions to our customers and boost the platform growth potential,” said EDPR’s Interim CEO Rui Teixeira.
On the administration front, C2’s existing management will stay put with Candice Michalowicz as the CEO.
Distributed solar power generation offers a growth opportunity that large businesses in the US do not want to miss. A December 2020 joint study by Sunrun, Vote Solar and Coalition for Community Solar Access (CCSA) claimed that development of 247 GW of local rooftop and community solar and 160 GW of local energy storage is the most cost-effective way for the US to transition to a clean energy system by 2050. It would also help the consumers save up to $473 billion on electricity.
In December 2020, Brookfield Renewable Partners said it will acquire a 1.06 GW distributed solar platform from Exelon to grow its overall portfolio in the US to exceed 2 GW (see Brookfield To Buy 1.06 GW Distributed Solar Platform In US). Before that Siemens and Green Investment Group of Macquarie launched Calibrant Energy to offer distributed generation services for US corporations (see Another Distributed Generation Entity For US Market).
Osaka Gas USA also took equity interest in a joint venture with SolAmerica Energy to grow its distributed solar and storage portfolio (see US Subsidiary Of Osaka Gas To Invest In Distributed Solar).