Renewable Energy M&A: Global Infrastructure Partners (GIP) makes a bold $1.8bn move into US offshore wind space

published on 16 February 2024
eversource-gip-e5gu5

šŸļøAcquired Eversource's 50% stake in 704 MW Revolution and 132 MW South Fork wind farms off Rhode Island and New York

šŸ’°Enerdatics calculates the enterprise value of the transaction to be $1.8bn, comprising $1.1bn in cash proceeds and ~$700mn in estimated liabilities associated with the projects

šŸ“ˆRecord-breaking EV ($mn)/MW multiple of ~4.3 sets a new standard in US offshore wind deals

Ram Derkar, an analyst in Enerdaticsā€™ transaction intelligence team, sees parallels with GIP's Hornsea 1 exits in the UK at $9mn/MW in 2022 and commented:

ā€œGIP's offshore wind strategy targets early entry and timely divestment - the firm sold its stake in the Hornsea 1 offshore wind project in the UK at multiples of $9mn/MW in 2022. Given the development progress of the US projects and the potential to monetize 40% Investment Tax Credits (ITCs), the estimated risk-to-reward ratio renders this deal an attractive investmentā€

The above analysis is proprietary to Enerdaticsā€™ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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