View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
April 23, 2019updated 07 Nov 2021 11:59am

America Electric Power acquires Sempra Energy’s wind assets in US

American Electric Power has completed the purchase of Sempra Energy’s renewables business and its operating wind generation and battery assets.

American Electric Power (AEP) subsidiary AEP Clean Energy Resources has completed the purchase of Sempra Energy’s renewables business and its operating wind generation and battery assets.

Free Report
img

Battery energy storage will be the key to energy transition – find out how

The market for battery energy storage is estimated to grow to $10.84bn in 2026. The fall in battery technology prices and the increasing need for grid stability are just two reasons GlobalData have predicted for this growth, with the integration of renewable power holding significant sway over the power market. Over the last decade, various new digital and smart technologies have been integrated, with countries aggressively promoting the modernization of grids, enhancing the grids’ capability to meet present and future requirements. As part of the effort, batteries are being deployed for a wide range of uses. A few such uses include aiding smart grids, integrating renewables, and creating responsive electricity markets. Read this report for expert insights into:
  • Market size and growth
  • Key drivers and restraints
  • Regional trends
  • The impact of the commodity price increase on the battery prices
Get ahead of this growing market and win big by utilizing our report.
by GlobalData
Enter your details here to receive your free Report.

The completion of the deal follows an agreement between both the parties in February this year. As part of the nearly $1.05bn deal, AEP has agreed to pay $551m in cash to Sempra.

The deal also includes $33m in working capital and assumption of $470m in existing project debt and tax equity obligations, subject to adjustments.

AEP chairman Nicholas Akins said: “The addition of these high-quality renewable assets and the experience of our new employees will support our long-term strategy to diversify our generation fleet.

“AEP’s renewable generation portfolio has increased to 1,075MW with the purchase of Sempra’s assets.”

“We’ve targeted a total of $2.2bn in capital investment in competitive, contracted renewables by 2023. The long-term contracts and attractive returns associated with these existing assets will be immediately accretive to earnings and solidify our projected 5% to 7% earnings growth rate.”

The assets purchased by AEP include all or part of seven wind farms and one battery installation located in seven US states such as Colorado, Indiana and Pennsylvania.

Five of the seven wind farms are jointly owned with BP Wind Energy, which intends to retain its stake in the projects.

These projects have long-term power purchase agreements (PPAs) in place with an average remaining life of 16 years. As part of the deal, 20 employees will join AEP Clean Energy Resources from Sempra Renewables.

AEP’s renewable generation portfolio has increased to 1,075MW with the purchase of Sempra’s assets.

Related Companies

Free Report
img

Battery energy storage will be the key to energy transition – find out how

The market for battery energy storage is estimated to grow to $10.84bn in 2026. The fall in battery technology prices and the increasing need for grid stability are just two reasons GlobalData have predicted for this growth, with the integration of renewable power holding significant sway over the power market. Over the last decade, various new digital and smart technologies have been integrated, with countries aggressively promoting the modernization of grids, enhancing the grids’ capability to meet present and future requirements. As part of the effort, batteries are being deployed for a wide range of uses. A few such uses include aiding smart grids, integrating renewables, and creating responsive electricity markets. Read this report for expert insights into:
  • Market size and growth
  • Key drivers and restraints
  • Regional trends
  • The impact of the commodity price increase on the battery prices
Get ahead of this growing market and win big by utilizing our report.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Power Technology