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🔄 Portfolio Sale: Orsted divests a 957 MW onshore wind portfolio in ERCOT, SPP, and MISO to Stonepeak for $300 million, marking its first partnership with Stonepeak and second onshore farm-down in the US, following a $410mn transaction with Energy Capital Partners.
💰 Financial Strategy: Stonepeak receives 80% of cash distributions, while Orsted retains a call option for Stonepeak's interests. This aligns with Orsted's traditional farm-down strategy, where shares of operational assets are divested to recycle and redeploy capital into new, value-generating projects.
📈 Business Plan Update: Orsted's Feb'24 update focuses on risk mitigation and sustained growth through farm-downs. Orsted expects to generate $17bn through divestments by 2030, with $11-12bn anticipated between 2024-2026. Consequently, Orsted has revised its 2030 renewable capacity target from 50 GW to 35-38 GW.
🌍 Strategic Refocus: The company is exiting markets in Norway, Spain, and Portugal, scaling back activities in Japan, and streamlining its approach to floating offshore wind and P-t-X development. Orsted believes that its project portfolio is now more robust, and it can focus on its offshore strategy in the US.
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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