LS Power to boost renewable energy capacity with Algonquin’s assets acquisition

LS Power, a prominent North American power and energy infrastructure development company, has officially announced its agreement to acquire the renewable energy business from Algonquin Power & Utilities Corp., signaling a significant expansion of its renewable energy portfolio. The transaction, expected to close between the fourth quarter of 2024 and the first quarter of 2025, involves acquiring over 3,000 megawatts (MW) of operational wind and solar assets and an extensive 8,000 MW pipeline of development projects across wind, solar, battery energy storage, and renewable natural gas.

Paul Segal, CEO of LS Power, emphasized the strategic importance of this acquisition. “This business complements our existing fleet of more than 19,000 MW of diverse and top-performing projects. We believe this platform will be crucial in addressing the increasing electric demand and advancing the energy transition,” Segal stated. The assets involved are strategically located across key markets in the U.S. and Canada, enhancing LS Power’s position in the renewable sector.

The acquired portfolio from Algonquin consists of 44 operational assets spread throughout North America. Approximately 2,700 MW of these assets are situated across various U.S. markets, including NYISO, MISO, PJM, ERCOT, and CAISO, with the remaining 300 MW located in Canada.

This acquisition marks a pivotal step for LS Power as it seeks to fortify its commitment to renewable energy and transition platforms. LS Power’s current portfolio includes notable entities such as REV Renewables, EVgo, CPower Energy Management, Rise Light & Power, Primary Renewable Fuels, Endurant Energy, LS Power Transmission, and LS Power Generation. Each plays a significant role in the development and operation of clean and renewable energy infrastructures.

The agreement awaits approval from the U.S. Federal Energy Regulatory Commission and compliance with relevant competition laws. LS Power is supported by legal advice from Milbank LLP and financial guidance from Scotiabank and BMO Capital Markets Corp.