Borrego, a developer, EPC and O&M provider for large-scale solar and energy storage projects in the U.S., has entered into a definitive agreement to spin off and sell its development business to ECP, an energy transition-focused investor.
The development business comprises a project pipeline of over 8.4 GW of solar and 6.4 GW/25 GWh of energy storage. Post-transaction, ECP will operate the development business as an independent company.
The company will be headquartered in Lowell, Massachusetts, and will be led by the current development team as they continue to execute the long-term business strategy in partnership with ECP. Dan Berwick, currently President of the development business, will become CEO.
Borrego will continue to invest in its engineering, procurement, and construction (EPC) and operations and maintenance (O&M) business units.
Borrego EPC currently owns more than 450 MW of solar projects and 200 MW of energy storage projects in design or construction. The team currently manages the performance of 1.4 GW and over 1,000 solar operating assets, the majority of which were built by other EPCs.
J.P. Morgan Securities acted as a financial advisor to Borrego in connection with the transaction.
In March 2022, Greenbacker Renewable Energy Company, an owner and operator of sustainable infrastructure and energy efficiency projects, announced that, through a wholly-owned subsidiary, it had purchased a pre-operational energy storage portfolio and two pre-operational solar portfolios from Borrego.
Last week, U.S.-based solar modules manufacturer First Solar entered into a definitive agreement with funds managed by PAG Real Assets, under which PAG will acquire a 293 MW utility-scale solar project development platform and a solar operations and maintenance (O&M) platform with approximately 665 MW under management in Japan.
According to Mercom’s Q1 2022 solar funding and M&A report, 23 GW of large-scale solar projects were acquired in Q1 2022 compared to 13.1 GW in Q4 2021. Project developers and independent power producers were the most active acquirers in Q1 2022, with over 17 GW of projects being acquired.