The acquisition follows RWE’s recent entry into the UK's solar market in Dec '22.
The transaction includes the acquisition of over 3.8 GW of solar projects and 2.3 GW of battery storage projects, both in advanced stages of development. The projects are concentrated around the UK’s central and southern regions. A large part of the pipeline has already secured grid connections, with several projects also ready for final investment decisions. RWE expects the realization of the first project from the pipeline as early as 2024. The acquisition closely follows RWE’s entry into the UK solar market in Dec’ 22 through the development of the 600 MW Tween Bridge project.
Founded in 2012, JBM Solar operates across the entire energy value chain, from origination and planning to funding and securing route-to-market. The company primarily focuses on utility-scale assets of 30-500 MW and has an in-house project development team. The transaction with RWE will provide JBM Solar with greater exposure to capital and expertise in project development, owing to RWE’s existing footprint in the UK wind power market. The company targets to invest over $53bn by 2030 for the expansion of its core business internationally, with 30% of the funds earmarked for the UK. RWE’s entry into the market is expected to complement the UK government’s ambition to increase its solar and battery capacity by five-fold to reach 70 GW and 6.5 GW, respectively by 2035.
Over the last few years, RWE has been consolidating its onshore renewables position in core markets in North America and Europe, largely through inorganic expansion. In North America, RWE closed the $6.8bn takeover of solar and wind developer Con Edison Clean Energy. The acquisition included over 3 GW of operating assets, primarily solar, and a 7 GW development pipeline comprising solar PV and onshore wind. The deal represented the largest renewable energy transaction of 2022, by value. Meanwhile, in Europe, RWE acquired Poland-based solar developer Alpha Solar in Aug'22, adding over 3 GW to its global solar pipeline. Going forward, Enerdatics expects RWE to continue pursuing corporate takeovers to expand its onshore renewable energy portfolio in North America and Europe.
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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