sPower to Merge with AES Clean Energy Development Business
Posted on 11/25/2020
Disclosed on November 17, 2020, Alberta Investment Management Corporation (AIMCo) reached an agreement with the AES Corporation to merge the sPower development platform, an independent solar developer in the United States, with AES’ U.S.-based clean energy development business. The merged business will represent one of the top renewables growth platforms by bringing together sPower’s and AES’ differentiated capabilities in solar, wind, and energy storage.
The press release states, “Future projects developed from the combined 12 gigawatts (GW) development pipeline will be owned 75% by AES and 25% by AIMCo, leveraging our successful partnership at sPower. Although there is no change in ownership of operating assets and backlog, the newly formed platform will manage the 2.5 GW of operating assets and the existing 2.6 GW contracted backlog. The transaction is expected to close in the next few months upon successful completion of customary closing conditions.”
sPower (formerly known as Sustainable Power Group, LLC) is headquartered in Salt Lake City, Utah. sPower is owned by a joint venture between AES and AIMCo.
On November 19, 2020, AES Corporation announced that it has priced US$ 800 million aggregate principal amount of 1.375% senior notes due 2026 and US$ 1 billion aggregate principal amount of 2.450% senior notes due 2031. AES intends to allocate an amount equal to the net proceeds from this offering to one or more eligible green projects. AES’ U.S. renewables platform comprises AES Distributed Energy, sPower, and other renewable assets in the U.S.