Sempra Energy closes solar assets sale to Consolidated Edison

14 December 2018 (Last Updated December 14th, 2018 11:48)

US-based Sempra Energy has completed the sale of its operating solar assets and battery storage development projects, as well as its stake in a wind facility to Consolidated Edison for $1.54bn in an all-cash transaction.

Sempra Energy closes solar assets sale to Consolidated Edison
The deal accounts for nearly 980MW AC of installed capacity. Credit: chuttersnap on Unsplash.

US-based Sempra Energy has completed the sale of its operating solar assets and battery storage development projects, as well as its stake in a wind facility to Consolidated Edison for $1.54bn in an all-cash transaction.

In September, Sempra Energy entered an agreement to sell certain US solar assets to Consolidated Edison.

Sempra Energy president and COO Joseph Householder said: “With the completion of this sale, we continue to build momentum toward becoming North America’s premier energy infrastructure company while expanding our opportunities to build and acquire other energy infrastructure.

“We’ve had a long-standing relationship working with Con Edison and want to commend their leadership team for their efforts to expeditiously complete this transaction.”

“Sempra Energy intends to use sale proceeds from the sale to reduce debt and expand its regulated Texas utility platform.”

Sempra Energy intends to use sale proceeds from the sale to reduce debt and expand its regulated Texas utility platform through Oncor Electric Delivery Company’s pending acquisition of InfraREIT.

As part of the deal, Consolidated Edison has acquired Mesquite Solar 2 and 3 in Arizona; Copper Mountain Solar 1 and 4 in Nevada. It has also gained Great Valley Solar in California, and solar and battery storage development projects.

In addition, Consolidated Edison has acquired Sempra’s stake in the jointly owned plants, including the Alpaugh, Corcoran and White River solar facilities in California; and the Broken Bow II wind facility in Nebraska.

The deal accounts for nearly 980MW AC of installed capacity.

Sempra noted that the divestments are part of a multi-phase, portfolio optimisation initiative, which was announced by the company in June.