Canadian pension fund Caisse de dépôt et placement du Québec (La Caisse) has announced the acquisition of Edify Energy, an Australian solar and storage infrastructure developer, for A$1.1bn ($724.57mn). The transaction also includes capital investment dedicated to two projects combining solar generation and battery storage, intended to supply several major industrial partners.
The two projects involved in this acquisition aim to deliver electricity to institutional clients, including mining group Rio Tinto and the Australian federal government. These Power Purchase Agreements (PPA) are a key component of Edify Energy’s business model, ensuring long-term commercial viability of the sites under development.
A strategic reinforcement in a growing market
The deal enables La Caisse to establish a lasting presence in Australia’s renewable energy market, which continues to expand. As Australia phases out ageing thermal assets, it is accelerating the rollout of renewable capacity to meet its 2035 climate goals. The government is targeting a 62% to 70% reduction in emissions compared to 2005 levels, requiring significant investment in generation and storage infrastructure.
With this acquisition, La Caisse expands its global portfolio, which reached C$496bn ($359.5bn) in net assets at the end of June. The organisation has already undertaken several initiatives in the Australian energy market in recent years, in line with its geographic diversification strategy within low-carbon infrastructure sectors.
Key industrial clients at the core of the business model
Edify Energy has structured part of its revenue around long-term contracts with energy-intensive industrial groups. The agreement with Rio Tinto, one of the world’s largest metal producers, reflects a growing trend to secure low-carbon power supply for mining operations.
The Australian federal government is also among the committed offtakers, confirming the authorities’ willingness to support the development of private renewable assets. The backing of major buyers helps reduce exposure to wholesale electricity market volatility while enabling the financing of complex projects.
Strengthened positioning in hybrid energy infrastructure
The two integrated solar and storage projects under development at Edify reflect the market’s shift toward hybrid solutions that help stabilise renewable intermittency. This type of infrastructure is central to the investment strategies of international funds, particularly in remote areas or regions with growing industrial demand.
According to the terms of the transaction, La Caisse will integrate Edify Energy’s management team into its Australian operations, ensuring operational continuity in project development. No immediate restructuring has been announced, and existing projects are expected to proceed on schedule.
