ERG’s entry into the US market, in partnership with Apex Clean Energy, represents a key step in its internationalization strategy. The management of a wind and solar portfolio in Iowa and Illinois indicates a focused and strategic approach.
Composition and size of assets
The portfolio includes a 224.4 MW wind farm in Iowa and a 92.4 MW solar power plant in Illinois. These facilities, operational and located in the MISO, contribute to the diversification of renewable energy production in the United States. Scheduled for commissioning in the first half of 2023, the wind farm is expected to generate over 800 GWh annually. The solar power plant, operational since the second half of 2022, is expected to generate over 150 GWh per year.
Financial and operational implications
The investment of $270 million for a 75% majority stake in the holding company is a strong indicator of ERG’s commitment to this partnership. Completion of the transaction, scheduled for 2024, is subject to regulatory approval. The assets acquired are debt-free, ensuring financial stability. Stable revenues are anticipated thanks to power purchase agreements (PPAs) signed with major partners.
Market Impact and Future Prospects
This acquisition gives ERG a foothold in the US, a key market for the renewable energies sector. ERG’s presence in the United States, through this partnership with Apex, could pave the way for future expansions and collaborations. In addition, the agreement provides for cooperation in the development of around 1 GW of new onshore solar and wind power projects.
ERG’s association with Apex Clean Energy in the United States marks a significant moment in the renewable energy sector, offering new prospects for growth and sustainable development.
