AGL Energy (AGL), an integrated energy company, has entered into a binding agreement to acquire 100% of the shares and units in Firm Power and Terrain Solar (The Group) for a total consideration of approximately $250 million.
Firm Power is a developer specializing in Battery Energy Storage Systems (BESS), with 21 projects currently in development, while Terrain Solar is a solar project developer with six projects in development.
The Group’s development pipeline totals 8.1 GW, comprising 6.1 GW of grid-scale BESS projects across New South Wales (2.3 GW), Queensland (2.7 GW), Victoria (0.3 GW), Western Australia (0.5 GW), and South Australia (0.3 GW).
Additionally, the pipeline includes 1.8 GW of solar projects in New South Wales (0.5 GW), Queensland (1.1 GW), Western Australia (0.1 GW), and South Australia (<0.1 GW), along with a 250 MW onshore wind project in New South Wales.
The acquisition, valued at approximately $250 million, is expected to be funded using cash from AGL’s balance sheet and is expected to close in 2024.
“The announcement demonstrates our commitment to grow and accelerate our development pipeline, which is already 6.2 GW. Therefore, AGL is best placed to take advantage of market conditions, prioritize developments that generate the best long-term value, and lead the energy transition. The Group’s development pipeline includes several mid-sized BESS projects, ranging between 200 and 500 MW and two-to-eight-hours storage duration,” said AGL’s Managing Director and CEO, Damien Nicks.
According to Mercom’s 1H and Q2 2024 funding and M&A report for Energy Storage and Smart Grid, In the first half of 2024, there were 14 M&A transactions, up from eight in the first half of 2023.
In June, Masdar (Abu Dhabi Future Energy Company PJSC), a UAE-based renewable energy project developer, reached a definitive agreement with Gek Terna SA and other shareholders to acquire an initial 67% stake in European clean energy developer TERNA ENERGY, subject to regulatory approvals and other conditions.
