Con Edison acquires $1.54B in renewable electric production projects
Consolidated Edison (Con Edison) acquired 981 megawatts (MW) of renewable electric production projects, including development rights for additional solar electric production and energy storage projects.
Con Edison bought the assets from a subsidiary of Sempra Energy for $1.54 billion. The acquisition is expected to close near the end of 2018.
“Renewable energy is the fastest growing source of the country’s supply of electricity, and the acquisition will accelerate our position as a market leader,” John McAvoy, chairman and CEO of Con Edison, said. “We have grown a meaningful large-scale solar business and will add value to new capital opportunities as they arise. With completion of this acquisition, we expect to be the second largest owner of solar electric production projects in North America.”
The acquisition will raise Con Edison’s renewable energy production portfolio to approximately 2,600 MW AC – including 85 percent in solar and 15 percent in wind. The clean energy produced will reduce carbon dioxide emissions by 5.4 million metric tons annually.
The projects are located in Nevada, Arizona, California, and Nebraska.
“These projects are located in states in which we currently own and operate projects, and in some cases are adjacent to our existing projects, creating opportunities for value-enhancing synergies,” Mark Noyes, president and CEO of Con Edison Clean Energy Businesses, said.
Con Edison will make the purchase using $715 million of equity and $825 million of long-term, non-recourse debt.
Con Edison provides energy to customers in New York City and surrounding counties in New York State and northern New Jersey. It reports approximately $12 billion in annual revenues and $49 billion in assets.
