Investment firm Ullico buys 24% stake in 1.3 GW renewables portfolio
- Insurance and investment firm Ullico said Tuesday it has agreed to invest in a 1.3 GW portfolio of renewable energy generation projects owned by affiliates of AES Corp and Alberta Investment Management Corporation (AIMCo).
- AES and AIMCo will retain a majority stake in the operating portfolio of more than 70 solar and wind farms across the U.S., which will be managed by an affiliate of sPower, a joint venture of AES and AIMCo that owns and operates renewable assets in the United States. AES and AIMCo agreed to each sell 24% of their 50% interest to Ullico, for a total interest of 24%.
- The transaction, "including two previously completed refinancings and reduced operating costs," would increase AES' return on sPower's operating portfolio to 13%, the company said in a Nov. 6 press release announcing third quarter results. Financial details of the Ullico transaction were not disclosed.
Washington, DC-based Ullico has been amassing renewable investments in a "commitment to projects that provide clean, low-cost energy across America," president and CEO Edward Smith said in a statement.
Renewable power investments in North America are growing as state governments increasingly consider or push for renewables mandates. In addition, the falling costs for the resources are making project developments more attractive when coupled with tax credits. On Tuesday, energy investment firm Captona Partners announced the acquisition of a 6 MW solar farm on a brownfield in Rhode Island.
More stock mutual funds and exchange-traded funds are specializing in clean energy investments, according to The New York Times. Investments range from renewable generators, such as the Ullico announcement, to energy efficiency, demand response, energy storage and electric cars.
sPower signed over 1,380 MW of new solar and wind power purchase agreements in the past year, a milestone the company celebrated following the one-year anniversary of its acquisition by AES and AIMCo. sPower will conduct operations and maintenance for the solar projects while General Electric will maintain the wind projects as the original equipment manufacturer, based on a long-term agreement, according to Ullico's statement.
Ullico previously invested in four other portfolios of renewable energy assets:
|2013||69 MWac||Kawailoa Wind Farm||Hawaii|
|2017||921 MWac||Wind and solar projects||U.S.|
|2018||642 MWac||Wind and solar projects||U.S.|
|2018||38.5 MWac||Solar generation projects||Ontario, Canada|
"The investment substantially scales up Ullico's footprint in renewable energy generation assets across North America while building a partnership with a fully integrated renewable platform as well as two like-minded investors," Rohit Syal, head of acquisitions for Ullico's infrastructure business, said in a statement.
The deal is subject to review by the Federal Energy Regulatory Commission.
CORRECTION: A previous version of this story misstated Ullico's total interest in the headline. Ullico would own 24% of the portfolio, pending regulatory approval.
- Windpower Engineering Ullico invests in 70 wind and solar projects, totaling 1.3 GW of renewable energy
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