Renewco Power CEO discloses additional details on first 1.5 GW US project pipeline M&A deal
Renewco Power expects half of its US projects it just acquired will file interconnection agreements by September 2022, said Renewco’s CEO Gavin McCallum in an interview with NPM.
The Scottish-based developer acquired a 1.5 GW pipeline of early-stage utility-scale solar projects and 500 MW of battery storage projects from privately held Beaufort Rosemary. The website for Beaufort Rosemary describes its pipeline as consisting of early-to-mid phase development in South Carolina, Mississippi, Alabama, Louisiana, West Virginia, and Kentucky.
Given the different regimes in each state, McCallum said Renewco Power is looking at PPAs and build/transfers.
Also given the interconnection logjam, which is gripping different ISOs and supply chain issues, McCallum does not expect any of these projects to reach COD until 2025 at the earliest.
“Access to the grid will be a significant issue for all the projects in these regions as elsewhere, but we have allowed for that in our project timelines,” said McCallum.
McCallum founded Renewco Power in September 2021 and had established a presence in Italy and Spain.
The opportunity for its initial US foray was the result of McCallum’s time working in power for BP from 2003 to 2008. At the same time, Kevin Casey, the managing director of Beaufort Rosemary, also worked at BP.
This relationship helped foster bilateral talks, which led to the July 6th deal announcement.
The GBP 24m (USD 28.8m) which Renewco Power raised from Corran Capital will help fund the acquisition and development funding for the initial pipeline.
“We are also well positioned to raise further capital if opportunities arise,” said McCallum.
*This story was originally published exclusively for NPM subscribers last month.
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