General Electric (GE) has signed an agreement with Enel Green Power’s (EGP) subsidiary Enel Green Power North America (EGPNA) to acquire 49% interest in a newly formed entity EGPNA renewable energy partners (EGPNA REP).
The new renewable energy firm maintains a portfolio of 760MW power derived from wind, geothermal, hydropower, and solar sources in North America.
Currently, 560MW of the capacity is operating across the continent, EGP said. Another 200MW wind project is in the developmental stage and is likely to be commissioned this year.
The majority stake for 51% will belong to EGPNA.
The transaction is worth $440m. It is in line with Enel Green’s intentions to actively manage EGP’s portfolio and push growth opportunities worldwide.
EGP will continue to handle the daily administration, operation, and maintenance activities of EGPNA REP assets.
GE Energy Financial Services will also be allowed the right of first offer (ROFO) to invest on any projects in North America, which are being developed or offered for sale by EGP, within an initial period of three years.
Enel Green Power chief executive officer and general manager Francesco Venturini said: "This partnership brings together two complementary leaders with a common view on the future of renewables development in the US.
"Moreover, the transaction is an early and important step forward in the delivery of our strategy to actively manage Enel Green Power’s portfolio of assets and further strengthen our growth opportunities globally."