US independent power producers Novatus Energy and Southwest Generation merge

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Comanche Solar, a 156MW PV project acquired by Novatus Energy in 2017. Image: Novatus.

Independent power producers Novatus Energy and Southwest Generation have merged to create Onward Energy.

The new company is owned by institutional investors who were advised by J.P. Morgan Asset Management. The deal will combine Novatus’ 1.9GW portfolio of solar and wind projects in the US and Southwest Generation’s 2.3GW of natural gas projects to jointly own 43 wind, solar and natural gas plants across 16 US states, including 543MWac of PV capacity.

John Foster, the chief executive of Colorado-headquartered Southwest, will become the merged entity’s executive chairman, while Novatus chief Steve Doyon will keep his job title and report to Foster as Onward Energy’s CEO.

Foster said the merger would place the new company as a “leader in the energy transition” in the US, that will offer a “full range” of energy solutions for its customers.

Doyon called the new entity the “best of both companies”, adding that the country’s energy transition “calls not only for flexible resources, but skilled and experienced teams to ensure clean and reliable power for customers across the United States; and backed by long term capital, Onward is ideally positioned to respond to those needs.”

The announcement comes as renewables are set to take increased market share from natural gas power producers in the US electricity generation market in the coming years. In January, the US Energy Information Administration predicted that natural gas generation will be eclipsed by wind, solar and hydro energy within the next 30 years, holding a 36% share of the market compared to 38% for renewables.

Read Next

April 14, 2021
There is likely to be demand across Europe for producing hydrogen from renewable energy, but the right regulatory frameworks and legislation need to be in place for the green hydrogen industry to find success.
April 8, 2021
Green hydrogen may become cheaper than natural gas by 2050, falling by 85% over the next 30 years, but declining costs in the solar sector will be crucial for the nascent technology's growth.
March 31, 2021
Renewables investor Cubico Sustainable Investments has completed its acquisition of a European 272MW solar power platform called Grupo T-Solar from I Squared Capital.
March 30, 2021
Australian utility AGL Energy has proposed a structural separation of the company that would involve the creation of two separate businesses: one focused on energy retailing and the other on large-scale electricity supply.
March 30, 2021
Local authorities in New South Wales, Australia, have given French independent power producer Neoen the green light to develop a large scale solar-plus-storage production facility in the region despite receiving 50 complaints from members of the public.
March 29, 2021
Despite additional solar and wind contributing to a record reduction in global coal generation last year, new renewable energy projects are still not being built quickly enough to keep pace with rising electricity demand.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET
Solar Media Events
May 11, 2021