Ohio-based electric utility American Electric Power (AEP) announced today an agreement with Blackstone, CDPQ and Invenergy-owned IRG Acquisition Holdings for the acquisition of a 1,365-megawatt (MW) renewable energy portfolio from AEP, at an enterprise value of $1.5 billion.
The portfolio of unregulated renewables assets includes 14 projects across 11 states, representing 1,200 MW of wind and 165 MW of solar. According to the companies, the power from the projects is contracted under long-term agreements with other utilities, corporations and municipalities.
The transaction marks the latest in a series of clean energy and renewables investments for Blackstone and CDPQ, including Blackstone’s recent acquisition with private equity investor Rivean Capital of rooftop solar mounting company, Esdec Solar Group, and an agreement in October by CDPQ to invest up to $474 million in Japanese renewable energy company, Shizen Energy.
Blackstone and CDPQ each hold large stakes in renewable energy company Invenergy. CDPQ initially invested in Invenergy in 2014, and has been increasing its stake in the company over the past few years, including a $1 billion investment announced in December 2020. Last year, in one of the largest-ever renewable energy investments in North America, Blackstone announced an agreement to invest approximately $3 billion in Invenergy.
Jim Murphy, President and Corporate Business Leader at Invenergy, said:
“Invenergy is proud to bring our industry-leading development, financial, and operating expertise to this quality renewable operating portfolio. Our longstanding record of working with AEP, familiarity with the portfolio projects, and the strength and cohesiveness of our investor consortium led to this significant agreement.”