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

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

💰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

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

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

“GIP'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 investment”

The above analysis is proprietary to Enerdatics’ 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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