Algonquin Power & Utilities Corp. (TSX:AQN) recently announced an agreement to divest its renewable energy business to LS Power. This transaction involves the sale of a portfolio comprising 44 operational assets with a total generating capacity exceeding 3,000 megawatts (MW).
Furthermore, the portfolio includes an extensive development pipeline of approximately 8,000 MW, encompassing wind, solar, battery energy storage, and renewable natural gas projects at various stages of progress. LS Power, a prominent development, investment, and operating company in the North American power and energy infrastructure sector, will acquire this business.
The acquisition by LS Power expands its renewable energy portfolio with a focus on wind and solar assets distributed throughout the United States and Canada. Around 2,700 MW of the assets are in the U.S., covering key markets such as NYISO in New York, ERCOT in Texas, and CAISO in California. The remaining 300 MW are based in Canada, enhancing LS Power’s presence in the North American renewable energy sector.
LS Power’s CEO, Paul Segal, emphasized the strategic importance of this acquisition, citing its alignment with LS Power’s existing renewable energy projects. The transaction is expected to close in either Q4 2024 or Q1 2025, pending regulatory approvals.
LS Power’s diverse energy transition platforms include REV Renewables, EVgo, CPower Energy Management, Rise Light & Power, LS Power Transmission, and LS Power Generation. This acquisition will bolster LS Power’s position in the renewable energy sector and support the transition towards cleaner energy sources.
Algonquin Power & Utilities Corp., a Canadian utility company based in Oakville, Ontario, owns a significant renewable energy and regulated utility portfolio across the U.S. and Canada. The company focuses on providing sustainable energy and water solutions to its customer base.
Algonquin Power & Utilities Corp. (TSX:AQN) was last traded at C$7.80 per share. Investors are encouraged to conduct their own research before making investment decisions.
