A joint venture led by AES Corporation and Alberta Investment Management (AIMCo) has completed its near $1.6bn acquisition of US-based renewable energy developer FTP Power (sPower) from Fir Tree Partners.

Set up in early 2014 by Fir Tree, sPower has grown its operating portfolio to about 1.3GW, with a development portfolio of over 10GW.

Its portfolio features over 75 solar and wind distributed power generation systems in operation in 11 US states.

As per the definitive agreement signed in late February, AES and AIMCo would each own a stake of a little under 50% in sPower.

The transaction included $853m paid in cash along with assumption of $724m in the form of non-recourse debt.

Fir Tree Partners founder and sPower board chairman Jeffrey Tannenbaum said: “We built a highly profitable business that will drive skilled worker job creation, local economic activity, and reduced environmental damage.

Fir Tree Partners founder Jeffrey Tannenbaum, who is also the board chairman at sPower, said that the company had built a highly profitable business that will create skilled worker jobs, bring about economic activity and decrease the damage to the environment.

Tannenbaum added: “We achieved this in spite of many obstacles that appear when a new industry challenges the status quo. 

“It is our clear hope that sPower, led by its highly-talented team, serves as a major catalyst for the acceleration of AES' portfolio to renewable energy, and that its positive impact continues far into the future."

Fir Tree Partners has stated that sPower would power about 250,000 homes with the clean energy it would generate upon completion of its pipeline in the current year.