LS Power swoops for Algonquin’s 11GW renewables business amid Trump Canada flap

LS Power finalised its acquisition of Canada's Algonquin Power & Utilities’ renewables business amid rising bilateral tensions as President-elect Donald Trump has put both clean energy and the US' northern neighbour in his crosshairs.

The deal which closed 8 January after being approved by regulators in both nations will add 3GW of operating assets and 8GW of pipeline projects to the New York-based firm's 23GW clean energy and natural gas fleet.

“By substantially increasing our generation capacity and pipeline of new renewable projects, we will continue to help meet rising power demand while advancing the energy transition,” said Paul Segal, CEO of LS Power.

“We see great opportunity to deliver renewable projects at scale across the country, and this transaction furthers our plan to execute this vision,” Segal added.

LS Power formed a new subsidiary, Clearlight Energy (“Clearlight”), to manage and grow the 44 operating solar and wind projects located throughout North America.

Clearlight also acquired some 1.8GW of Algonquin’s 8GW renewables project pipeline in the deal, which includes projects in Canada and those that are co-located with existing operating assets.

LS Power’s US subsidiary REV Renewables meanwhile is taking Algonquin’s remaining 6.2GW of pipeline within the United States, adding to its 2.9GW fleet of operating wind, solar, battery energy storage assets and expanding its pipeline of more than 21GW.

“The acquisition of these additional development projects complements REV’s objectives to develop renewable energy solutions that will transform our electric system,” said Ed Sondey, CEO of REV Renewables.

The acquisition has been in the works for several months and comes as the North American renewables sector is facing increasing uncertainty with the imminent inauguration of Trump on 20 January.

Trump eyes Canada annexation

Trump also pushed his idea of putting economic pressure, including import tariffs, on Canada, floating the idea of annexing the US’ northern neighbour as the 51st state.

“We are not treated well, as you know, by Canada. Canada is subsidised to the tune of about $200bn a year,” Trump said, taking aim at what he claimed was the value of the US trade deficit with its northern neighbour.

According to the Bank of Montreal, the US trade deficit with Canada was only $60bn in the prior 12 months, ranking eighth among trade partners, and amounting to around a fifth of the nation's deficit with China.

“Canada and the United States, that would really be something; you get rid of that artificially drawn line, and you take a look at what that looks like, and it would also be much better for national security,” Trump said, adding: “Don't forget, we basically protect Canada.”

While the notion has been panned in the Canadian press, Prime Minister Justin Trudeau announced his resignation this week, which pundits have linked in part to his reluctance to counter an aggressive Trump administration.