EDP Renewables determined to move beyond wind-only legacy with new distributed solar acquisition
While EDP Renewables has been a major player in the wind space since 2007, the company has recently begun making moves to expand its footprint, particularly in solar. It's recent acquisition of an 85 percent stake in C2 Omega's Distributed Solar platform continues the expansion narrative.
To get additional detail on this acquisition and how EDPR NA plans to leverage its newfound assets as it doubled the pace of its renewables deployment, NPM spoke with EDPR NA spokesman Thomas Weirich.
NPM: Can you provide some background information on EDPR NA and describe your focus in the renewables market?
Tom Weirch: EDP Renewables North America is the fourth-largest wind developer in the United States. Our story in the U.S. began in 2007 when we acquired Horizon Wind Energy. Since then, EDP has more than doubled our wind power production. In North America, we have developed more than 7.5 GW and operate more than 7.2 GW of renewable energy projects.
On February 25, EDP announced that it would double the pace of its renewable energy installations during the next five years spending EUR 19bn to build 20 GW of new wind and solar plants while shifting its focus more heavily to the U.S. market through EDPR NA.
As part of this vision, EDPR NA announced the acquisition closing for an 85 percent stake in C2 Omega's distributed solar platform, further expanding our leadership in the distributed energy sector. The new business unit called EDPR NA Distributed Generation (EDPR NA DG) will focus on the acquisition, financing, development, construction and ownership of solar and storage DG projects in the C&I, MUSH and community solar markets.
NPM: When did EDPR NA become interested in acquiring a stake in the C2 Omega Distributed solar platform?
EDPR NA began initial discussions with C2 Omega in 2019 which came about from the need to serve a rapidly growing market and offer our customers a range of new solutions to meet their renewable energy goals.
NPM: Can you discuss the acquisition specifics?
In detail, EDPR NA has acquired an 85 percent equity stake in a solar generation portfolio that includes 89 MW of operating and imminent completion capacity and a near-term pipeline of 150 MW across 200 sites in 16 states. EDPR NA's investment corresponds to a total enterprise value of approximately USD 119m for the acquisition of the operating capacity. The transaction also included certain earn-out payments based on the growth in future operational capacity.
NPM: How will EDPR NA DG's focus fit with the rest of the company's goals for North America?
EDPR NA DG's tailored approach to servicing its customers, which range from schools and churches to Fortune 500 companies coupled with the utility scale resources and bankability of EDPR NA, provides the U.S. market with a player who can create positive disruption in the market no matter the scale and scope of the project. EDPR NA DG's aim will be to leverage its project developer relationships and the strength of its new business unit's resources to accelerate growth and achieve greater scale in the U.S. market.
This acquisition confirms EDPR NA's commitment to the North American market. With the acquisition complete, EDPR NA will be able to provide everything from vPPAs to rooftop solar installations. This expanded suite of services and solutions will cover the entire DG market, something very few entities can currently commit to in the U.S.