Sempra Energy has entered into an agreement with Consolidated Edison to sell its renewable energy assets in the US for $1.54bn.
The assets include non-utility operating solar assets, solar and battery storage development projects and one wind facility with a total capacity of 980MW, Sempra Energy stated. The all-cash transaction is subject to adjustments for working capital and pre-closing cash contributions.
The sale includes nearly 980MW of installed capacity in Sempra Energy’s non-utility renewables portfolio.
It is part of the San Diego-based energy services holding company’s multi-phase, portfolio-optimization initiative designed to sharpen its strategic focus, which was announced in June this year.
As part of portfolio-optimization plant, the company is also planning to sell rest of its non-utility wind assets and some of the midstream natural gas assets in the US.
Assets being sold to Consolidated Edison include Mesquite Solar 2 and 3 in Arizona; Copper Mountain Solar 1 and 4 in Nevada; Great Valley Solar in California; and solar and battery storage development projects.
Besides, Consolidated Edison will acquire the facilities jointly owned with Sempra Renewables that include Mesquite Solar 1; Copper Mountain Solar 2 and 3; the Alpaugh, Corcoran and White River solar facilities in California; and the Broken Bow II wind facility in Nebraska.
Sempra Energy president and chief operating officer Joseph Householder said: “This sale represents an important step forward in the portfolio-optimization plan we announced in June to support market growth opportunities. We plan to work closely with Consolidated Edison to ensure a smooth transition.”
The transaction is subject to customary closing conditions and consents, including approvals from the Federal Energy Regulatory Commission and the US Department of Energy, and expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
It is expected to completed near the end of 2018.
Earning a revenue of more than $11bn last year, Sempra Energy is the utility holding company with a significant customer base in the US. Serving more than 40 million consumers worldwide, the Sempra Energy companies’ employ nearly 20,000 people.