Portuguese energy utility EDP, through its subsidiary EDP Renewables (EDPR), has agreed to sell an 80% equity stake in a 384MW solar-plus-storage portfolio in the US to a private equity firm Ares Infrastructure.
The portfolio comprises 200MW of solar PV and a 184MW battery energy storage system (BESS) in California. The solar project is backed by a 20-year power purchase agreement (PPA), while the BESS capacity is contracted under a 20-year capacity tolling agreement.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
The transaction is valued at US$800 million for 100% of the assets at the start of operations. EDP expects to receive around US$450 million from the sale of the 80% stake, with half of the proceeds payable at financial close and the remainder at commercial operation date (COD).
The portfolio reached final investment decision (FID) in August 2025 and was EDPR’s first US FID following the enactment of the One Big, Beautiful Bill Act in July 2025 (subscription required).
EDPR said the transaction is expected to generate a gain of around 40% over gross invested capital, subject to final adjustments, exceeding the company’s 2026–2028 asset rotation target of 15%.
The deal comes as EDPR reported stronger financial performance for the first half of 2026, with net profit rising 96% year-on-year to €184 million (US$212 million), supported by solid operational performance and higher asset rotation gains.
Recurring EBITDA increased 8% year-on-year to €1.03 billion, while the company generated 22.1TWh of renewable electricity during the period and ended June with 20.5GW of net installed capacity.
EDP Renewables North America (EDPR NA), the US subsidiary of EDP, signed a build-and-transfer agreement with Appalachian Power to develop a 100MW solar PV project in the US in May 2026.
Under the agreement, EDPR NA will develop and construct the project before transferring it to Appalachian Power, a subsidiary of American Electric Power. The transaction has an estimated enterprise value of around US$300 million, with the project expected to enter commercial operation in 2028.
