Through Macquarie Green Investment Group Renewable Energy Fund 2 (MGREF2), Macquarie Asset Management entered into an agreement to acquire a 50% stake in Island Green Power, a UK-based renewable energy project developer.
Island Green Power primarily focuses on developing utility-scale solar projects and has a formed pipeline in the UK and Spain.
Concurrently with the transaction, Macquarie Asset Management has also agreed to acquire a stake in a ready-to-build 65 MW solar project located in Suffolk, UK, from Island Green Power. The project comprises a 50 MW battery storage that closely aligns with MGREF2’s mandate to develop, construct, and operate renewable energy projects over the long term.
The financial terms of the two transactions have not been disclosed.
“Solar energy is a cornerstone technology that will play a central role in helping countries meet their net-zero targets. Island Green Power has a strong track record of delivering successful solar projects, particularly in the UK. We are delighted to support Island Green Power as it continues to expand its pipeline of projects across the globe, and we are excited to take their Suffolk solar development project forward,” said David Tilstone, a Managing Director at Macquarie Asset Management.
Ian Lawrie, Chief Executive Officer of Island Green Power, said: “Over the past decade, our business has grown from being a UK-focused solar developer to become one of the major International solar developers with operations in five markets. With Macquarie’s support to accelerate our growth ambitions further, we are well-positioned alongside our investment partners to play a leading role in the energy revolution and deliver long-term energy security.”
Subject to the customary closing conditions and regulatory approvals, the transaction is expected to reach completion by Q2 2022.
According to Mercom’s Q4 2021 solar funding and M&A report, M&A activity in the solar sector soared with 126 transactions in 2021 – the highest number of deals ever recorded. Most of the transactions involved Solar Downstream companies.