Energy transition investment company, ECP, has reportedly announced its acquisition of the remaining 50 per cent stake in leading renewable energy firm, Terra-Gen. The move reportedly comes after the company’s completion of its first Continuation Fund with a sum of $1.2 billion in capital commitments.
The deal will offer additional capital for supporting the next phase of Terra-Gen’s growth. Furthermore, it will also enable ECP’s ECP III fund to entirely exit its original investment in the RE firm.
According to Schuyler Coppedge, a Partner at ECP, as one of the biggest owners of renewable assets in the United States, ECP is thrilled to continue its collaboration with Terra-Gen. This comes as the company progresses into its next phase of growth and executes a strong pipeline of advanced near-term development opportunities.
Coppedge further stated that ECP believes that Terra-Gen’s storage and wind assets in particular will serve as crucial resources for facilitating the energy transition. This will also help California in meeting its decarbonization and renewable goals, added Coppedge.
ECP III originally took over Terra-Gen in 2015. The company has partnered with an experienced management team for the acquisition of a portfolio of strategically situated California renewable assets. ECP also intended to capitalize on numerous compelling development opportunities.
It is to be noted that since ECP’s opening investment, Terra-Gen has more than doubled its portfolio of functional RE assets. The company has also extended its pipeline of solar, wind, and battery storage projects across California and various major domestic markets.
Terra-Gen presently operates over 1,600 MW of facilities and has over 3,000 MW of projects under advanced development. One of these projects is the Edwards Sanborn solar + storage project, which is the largest of its kind in North America.
As per sources, Blackstone Strategic Partners is the lead LP in the Continuation Fund. The fund also comprises a diverse group of global investors, inclusive of ECP III’s existing limited partners.