Consolidated Edison over the weekend announced it reached an agreement to sell its Con Edison Clean Energy Businesses to RWE Renewables Americas in a deal valued at $6.8 billion.
Con Ed’s Clean Energy Businesses includes three principal subsidiaries: Con Edison Development, Con Edison Energy and Con Edison Solutions. The group says it owns and operates more than 4 GW of renewables projects and is the second largest solar energy owner and operator in North America.
The sale is expected to close in the first half of 2023, subject to certain conditions, including approval from the Federal Energy Regulatory Commission.
Consolidated Edison delivers electricity to about 3.3 million customers in New York City and Westchester County.
The sale “will allow Con Edison to sharply focus on our core utility businesses and the investments needed to lead New York’s ambitious clean energy transition," Timothy Cawley, the utility’s chairman and CEO, said in a statement.
“We will continue to advocate for state approval of utility-owned renewable generation for the benefit of our customers and all New Yorkers,” Cawley added.
Con Edison said that because of the transaction, it would not move forward with plans to issue up to $850 million of common equity in 2022. The utility also withdrew its equity guidance for 2023 and 2024.
According to RWE, the deal will almost double its U.S. renewables portfolio to more than 7 GW of operating assets.
“The acquisition of Con Edison Clean Energy Businesses is a major boost for RWE’s green expansion in the United States, one of the most attractive and fastest growing markets for renewable energy,” RWE CEO Markus Krebber said in a statement. The company is headquartered in Germany.
“The unique combination of complementary portfolios in onshore wind, solar and batteries creates one of the leading renewable companies in the U.S. market,” Krebber said.