OnSite Partners executive discusses Basalt Infrastructure acquisition
American Electric Power (AEP) closed on the sale of its distributed resource subsidiary, AEP OnSite Partners, for USD 318m with Basalt Infrastructure Partners on Monday.
“Basalt wants to put capital to work and I’m excited about their desire to deploy private capital within the energy as a service sector,” said Dan Smies, OnSite Partners Managing Director of Business and Development Strategy, in an interview with NPM.
Smies told NPM that the deal includes a portfolio of more than 200 MW of operating assets and assets under construction across 93 projects in 21 states such as Ohio, New York, and Colorado, The portfolio also includes a robust development pipeline, added Smies.
OnSite projects include solar, storage, combined heat and power, electrical substations, fuel cells, waste heat recovery, and peaking generation resources.
The initial deal announced in May noted a 300 MW portfolio across nearly 100 sites, however a few projects were peeled away in New Mexico and sold to Exus Renewables earlier this year, according to Smies.
The 625 MW portfolio, New Mexico Renewable Development, LLC, was a joint venture between AEP and PNM Resources and comprised of 15 solar facilities.
The company will drop AEP from its name but maintain the OnSite Partners brand focused on competitive DG investments with schools, municipalities, hospitals, and other commercial and industrial (C&I) customers.
Former Sr. Vice President, Scott Slisher, will take on the role of CEO. Slisher has held a variety of roles at AEP, NiSource, and Solargenix Energy.
The deal received regulatory approval from the Federal Energy Regulatory Commission in August.
TD Securities served as exclusive financial advisor and Kirkland & Ellis served as legal advisor to Basalt.
Basalt is a mid-market transatlantic focused infrastructure investment firm with USD 7bn in assets under management.
*This story was originally published exclusively for NPM subscribers last month.
