Generation Bridge, a subsidiary of ArcLight Energy Partners Fund VII, has closed its acquisition of a 4.9GW power generating portfolio from NRG Energy for a $760m consideration.

In March, the company signed a definitive purchase agreement to acquire the assets in NRG’s East and West regions.

ArcLight Capital Partners founder and managing partner Dan Revers said: “Generation Bridge complements the ongoing energy transition by providing dispatchable generation and will serve as a platform for the development of additional renewable energy resources.

“ArcLight remains highly focused on investments supporting the ongoing energy transition, including through its substantial experience in renewable energy, battery storage and its recently announced 73MW solar acquisition within our Infinigen renewables platform.”

The acquired portfolio includes eight power generation facilities that serve customers in California, New England and New York.

Generation Bridge expects the portfolio to help integrate irregular renewable resources in these markets in the future.

The deal was funded by $540m in senior secured credit facilities in the institutional term loan market.

ArcLight said that Generation Bridge will not develop the 375MW fossil-fired project that it had previously assessed at its plant in Middletown, Connecticut.

Milbank served as ArcLight’s primary legal counsel for the deal, while Credit Suisse acted as the company’s exclusive financial advisor.

Generation Bridge is currently reviewing several potential development projects, including a 65MW battery storage project in California and another with 15MW of capacity in New York.

It is also evaluating the development of a 25MW solar project in Oswego, New York, as well as offshore wind interconnections to third-party projects.

In August, Public Service Enterprise Group (PSEG) agreed to divest a 6.75GW fossil power generating portfolio to ArcLight Energy Partners Fund VII subsidiaries for around $1.92bn.

The sale is part of PSEG’s ‘strategic alternatives process’, which the company announced last July.