American Electric Power (AEP) is selling its distributed resources business, AEP OnSite Partners, to Basalt Infrastructure Partners for ~$315mn. Post-sale, AEP's operations in the deregulated markets will be focussed solely on retail energy to meet rising demand.
🔋 Portfolio Highlights:
– 300 MW of renewable capacity across nearly 100 US sites
– 253.6 MW of solar assets, with the rest comprising batteries, fuel cells, etc.
– Key markets: Ohio, Minnesota, New Mexico, Connecticut, New York
🚀 Utilities’ Exit from Deregulated Markets:
– Since 2023, many US utilities have announced plans to sell unregulated renewables portfolios.
– Increased competition following the IRA's passage is driving this trend.
– Utilities are refocusing investments on core, regulated businesses, particularly transmission assets.
đź“„ Recent Major Deals:
– AEP's sale of a 1.36 GW portfolio to Invenergy-led consortium for $1.5bn
– Duke Energy's divestment of utility-scale business to Brookfield for $2.8bn
– Duke Energy's sale of commercial distributed business to ArcLight for $364mn
– Con Edison’s sale of Clean Energy Businesses to RWE for $6.8bn
– Recently, PG&E and Algonquin have also announced plans to sell their renewable generation businesses in the deregulated markets.
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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