BW Solar Holding, a subsidiary of BW Solar, and Capital Power signed a Membership Interest Purchase and Sale Agreement. Capital Power will acquire 100% of a portfolio of 20 solar and energy storage development portfolios in the United States.
Capital Power, a renewable energy power producer, owns approximately 6,600 MW of power generation capacity at 26 facilities across North America. Projects in advanced development include approximately 425 MW of renewable generation capacity in North Carolina.
The acquisition supports Capital Power with an attractive solar and storage platform for continued growth in the rapidly growing solar market in the United States.
The portfolio has a total generation capacity of approximately 1,298 MW, with sites ranging from 15 MW to 340 MW. The portfolio also offers the potential to co-locate over 1200 MWh of energy storage.
The majority of the projects are in the MISO, PJM, and SERC electricity markets, and all are in the interconnection queues of their respective regional transmission organization. The closing of the transaction is subject to customary conditions, and it is anticipated that sites will be construction-ready by 2024, with commercial operation dates between 2025 and 2026.
BW Solar focuses on developing solar power generation and energy storage projects, primarily in Canada and the United States. BW Solar’s development approach focuses on providing the lowest Levelized Cost of Energy (LCOE) and minimizing development risk.
According to Mercom’s 9M and Q3 2021 Solar Funding and M&A Report, project acquisition activity was 129% up with 55.5 GW, being acquired compared to 24.3 GW in the same period of 2020. Project Developers were the most active solar project acquirers in Q3 2021, followed by Investment Firms in Q3 2021.
According to the report, there were 64 large-scale solar project acquisitions for a total of $2.1 billion in Q3 2021 compared to 54 transactions for $1.7 billion in Q2 2021. Year-over-year, there were 57 transactions for $1.9 billion recorded in Q3 2020.