Masdar, a subsidiary of Abu Dhabi Future Energy Company PJSC, announces the acquisition of 50% of Terra-Gen Power Holdings II, LLC, a major independent renewable energy producer in the United States. Energy Capital Partners (ECP), the former owner of this stake, has fully divested from Terra-Gen following the transaction. Igneo Infrastructure Partners, an existing shareholder, retains its remaining 50%. This investment enables Masdar to strengthen its position in the U.S. renewable energy market and diversify its asset portfolio.
Terra-Gen operates a total of 3.8 GW of installed capacity, consisting of wind, solar, and battery storage projects spread across several U.S. states, primarily California and Texas. The company also manages a 5.1 GWh energy storage network, giving it a strategic advantage in this growing segment. The acquisition is part of Masdar’s strategy to expand its presence in the U.S. market and contribute to the energy goals established at the COP28 summit.
Long-term development in the U.S. market
This acquisition reflects Masdar’s ambition to become a key player in the U.S. renewable energy sector, following its initial entry into the market in 2019. Prior to this acquisition, Masdar owned a U.S. portfolio of wind, solar, and storage assets with a combined capacity of 1.4 GW. The partnership with Terra-Gen will significantly increase this capacity, with the goal of surpassing 10 GW by 2030. Terra-Gen’s development platform includes over 12 GW of projects currently under development, encompassing wind and solar installations in Texas, California, and New York.
The Terra-Gen acquisition also aligns with the **Partnership for Accelerating Clean Energy (PACE)**, an agreement signed between the U.S. and the UAE in January 2023. This partnership aims to mobilize $20 billion to fund 15 GW of renewable energy projects in the U.S. by 2035. This collaborative dynamic highlights Masdar’s ambitions to support the global energy transition.
Portfolio evolution and growth prospects
Terra-Gen’s portfolio includes several strategic projects at various stages of development. In California, the company plans to commission a new solar installation and a storage project by 2025, adding 512 MWh of additional storage capacity to its existing network. Concurrently, a 386 MW wind project is under construction in Texas. These developments come amid strong demand for clean energy infrastructure in the United States, supported by federal initiatives such as the **Inflation Reduction Act** of 2022.
The financial and strategic backing of Igneo, combined with Masdar’s expertise, enables Terra-Gen to capitalize on these opportunities, diversify, and stabilize its asset portfolio. The focus remains on optimizing storage capacity and reducing operational costs to ensure long-term profitability. Managing energy price volatility and addressing decarbonation goals are central priorities for this collaboration.
A structuring partnership for the energy future
Sultan Al Jaber, UAE Minister of Industry and President of COP28, emphasized that this transaction strengthens the UAE’s commitment to support renewable energy development in the United States. By surpassing the 10 GW capacity target in the U.S. by 2030, Masdar aims to establish itself as a major investor in this strategic market. Terra-Gen’s capabilities, combined with Masdar’s resources, create a favorable dynamic to achieve the objectives set by the PACE plan.
Masdar’s involvement in the U.S. market is also accompanied by a strengthening of its strategic partnerships internationally. Operating in more than 40 countries, the company has a global portfolio of 20 GW of renewable energy assets. With Terra-Gen, Masdar plans to expand its footprint in the wind and solar sectors while enhancing its expertise in energy storage. This acquisition, in the context of a rapidly transforming energy sector, responds to growing investor expectations and positions the Emirati company as a key player in the industry.
