Brookfield Renewable, an owner, operator, and developer of renewable power, has agreed to acquire Scout Clean Energy, a renewable energy developer, for $1 billion with the potential to invest an additional $350 million to support the business development activities.
The company also announced closing its acquisition of Standard Solar, a solar energy company specializing in developing and financing solar electric systems, for consideration of $540 million with the potential to invest an additional $160 million to support the business’ growth initiatives.
Scout and Standard Solar will continue to operate independently within the Brookfield Renewable U.S. platform. The transactions will be invested through the Brookfield Global Transition Fund I (“BGTF I”), a fund for the energy transition. Co-led by former Bank of England Governor and Brookfield Vice Chair Mark Carney and Brookfield Renewable CEO Connor Teskey, BGTF I has raised $15 billion to invest across a range of transition opportunities.
Connor Teskey, CEO of Brookfield Renewable, said: “We are thrilled to be putting more dollars to work in our U.S. renewables business. We underwrote both transactions without the benefit of the Inflation Reduction Act, so the additional incentives now available represent a significant boost to each business. Our development pipeline in the United States is now close to 60,000 MW and is well diversified across wind, utility-scale solar, distributed generation, and energy storage. Combined with our existing fleet, we are well positioned for continued growth as owners and operators of one of the largest diversified clean power businesses in the country.”
The Brookfield Global Transition Fund has invested or allocated $3.5 billion for clean energy investments and follow-on capital in North America in 2022.
According to Mercom’s 1H and Q2 2022 Solar Funding and M&A Report, in 1H 2022, there were 53 solar M&A transactions compared to 54 transactions in 1H 2021. Bboxx, a designer, manufacturer, distributor, and financer of plug & play solar systems, recently acquired PEG Africa, a distributed energy provider in West Africa. This deal gives Bboxx access to ten new markets, including Senegal, Ivory Coast, Ghana, and Mali.