Scotland-based renewables developer Renewco Energy has acquired a 2GW pipeline of US-based photo voltaic and power storage belongings from Beaufort Rosemary.
Renewco, which is backed by British utility large SSE, is to moreover accomplice with Beaufort Rosemary on additional websites within the US, with the duo having set an goal of bringing 3GW of photo voltaic and storage websites to shovel-ready standing inside 5 years.
The preliminary pipeline of belongings consists of 1.5GW of early-stage utility-scale photo voltaic and 500MW of battery storage initiatives, and each Renewco and Beaufort Rosemary are to pay attention their efforts in bringing ahead initiatives within the Southeast and Midwest of the US.
The acquisition has been supported by funding of £24 million (US$29 million) supplied by funding group Corran Capital, which in flip raised the capital from SSE.
The brand new funding doubles Renewco’s funding commitments 9 months after the agency was shaped.
Beaufort Rosemary, which has been lively since 2018, stated it had constructed a “substantial pipeline” of US photo voltaic and power storage belongings by working intently with each landowners and native communities.
“With Renewco’s monetary backing and important improvement experience, our initiatives can now be accelerated and the pipeline expanded,” Beaufort Rosemary founder Kevin Casey added.
The deal is the most recent in a string of current bulletins and M&A offers as improvement stage photo voltaic asset pipelines within the US change fingers. Current months have seen sizeable pipeline acquisitions from the likes of Onward Vitality, TotalEnergies and Engie North America, amongst others, to bolster their US-facing pipelines.
Amidst trade expectations for consolidation within the US photo voltaic market following uncertainty attributable to the Division of Commerce’s AD/CVD circumvention investigation, additional M&A exercise is anticipated.
Talking to PV Tech, Renewco CEO Gavin McCallum stated that the primary issue for elevated M&A in US photo voltaic is “optimistic long-run market fundamentals” and a necessity for additional funding to make sure developments are “correctly capitalised,” with Renewco particularly making offers for the long term.
“We’re concentrating on able to construct belongings in 5 years by which period we count on the continued dept of commerce investigation to be resolved and there to be extra choices for builders to purchase panels, together with US home suppliers which we might welcome,” he stated.