Engie sells 49% stake in 2.3 GW of renewables in the USA

ENGIE has signed an agreement to sell 49% equity interest in a 2.3 GW US renewables portfolio to Hannon Armstrong, a leading investor in climate change solutions. ENGIE will retain a controlling share in the portfolio and continue to manage the assets.

On commissioning, this 2.3 gigawatts (GW) portfolio that comprises 1.8 GW of onshore wind and 0.5 GW of solar photovoltaic (PV) projects, will represent a major milestone in achieving ENGIE’s goal of commissioning 9 GW additional renewable capacity by 2021.

Hannon Armstrong Chairman and CEO Jeffrey W. Eckel, said: "We have a shared mission to accelerate to the rapid adoption of climate change solutions, and we are pleased to partner with ENGIE once again to that end. This investment adds significant scale and diversity to our portfolio."

Under the agreement, Hannon Armstrong will take immediate ownership of 49% of 663 megawatts (MW) of commissioned wind projects. The remaining 1.6 GW of projects, currently under construction, will be transferred into the partnership upon commissioning. In line with its majority ownership, ENGIE will continue to consolidate the projects in its accounts.

In April 2020, ENGIE secured US$1.6 billion tax equity commitments, bringing the total tax equity commitments for the portfolio to almost US$2 billion. Tax equity financing is the traditional structure used in the United States to support the development of renewable projects.

The portfolio comprises 13 projects (9 onshore wind farms and 4 solar farms), located in key markets in the United States, including the Electric Reliability Council of Texas (ERCOT), Midcontinent Independent System Operator (MISO), PJM Interconnection, and the Southwest Power Pool (SPP).