British multinational electricity and gas utility company National Grid has entered into an agreement to acquire US-based clean energy developer Geronimo Energy for $100m in order to expand its presence in the US.
National Grid has also agreed to make further payments, subject to the development of the project pipeline.
Established in 2004, Geronimo Energy has developed and sold more than 2.2GW of wind and solar projects currently in operations or under development.
Additionally, National Grid is advancing an agreement with Geronimo to acquire a 51% stake in 378MW of solar and wind generation projects for $125m.
With a long-term power purchase agreement (PPA) in place, the projects will be jointly owned by National Grid and Washington State Investment Board (WSIB) and will be operated by the British company.
Once the deal is finalised, the joint venture (JV) with WSIB will hold the right of the first offer on projects to be developed by Geronimo Energy in the future.
National Grid said that its investment in the projects is in line with its long-term strategy.
The completion of both the deals is subject to approval, with the closing expected to take place in the second quarter of this year.