EDP Renewables (EDPR) has acquired an 85% stake in C2 Omega, the distributed solar platform of renewables investor C2 Energy Capital.
The investment, which corresponds to an enterprise value of approximately US$119 million, sees EDP Renewables North America take a majority stake in a US distributed solar portfolio that includes 89MW of operating and imminent completion capacity and a near-term pipeline of around 120MW, spanning nearly 200 sites across 16 states.
EDPR, which is majority-owned by Portuguese utility EDP, said the transaction will see it operate “one of the largest commercial and industrial distributed generation portfolios in the US”, enabling it to offer its customers new solutions to meet their energy needs.
Expected to close in the first quarter of 2021, the deal will include certain earn-out payments based on the growth in future operational capacity. C2's management team will continue to be engaged in the day-to-day operations of the business.
EDPR interim CEO Rui Teixeira said the acquisition confirms the company’s commitment to North America, where it has developed more than 7.6GW and operates more than 7.2GW of renewable energy projects. The firm recently sold a majority stake in five US renewables assets for US$700 million.
“The agreement reached with C2 Omega LLC is a key milestone for EDPR, enabling us to enter a fast-growing segment in the US through a leading provider of distributed generation,” Teixeira said. “C2 Omega is a company with an impressive track record, a strong management team and a high quality commercial and industrial portfolio.”
The strong potential for US distributed solar was revealed in a recent study that found that deploying at least 247GW of rooftop and community solar as well as 160GW of local energy storage is the most cost-effective way for the country to transition to a clean energy system by 2050. The joint report from Sunrun, Vote Solar and the Coalition for Community Solar Access found that these additions would be enough to power more than 25% of US homes and result in significant savings for consumers.