Macquarie to acquire 'significant minority stake' in US investor DE Shaw's renewables unit
If regulators approve deal, funds managed by Australian finance giant will access a 6GW platform of onshore wind, solar and storage, and 25GW development pipeline
Macquarie Group’s asset management division will acquire a “significant minority stake” in the renewable energy unit of DE Shaw for up to $1.73bn, a cash injection the US investor says will enhance its domestic utility-scale onshore wind, solar, and battery storage market presence.
The deal, if approved by regulators, involves funds managed by Macquarie Asset Management (MAM) and DE Shaw Renewable Investments (DESRI), a medium-scale asset developer, owner, and operator based in New York. MAM is part of Australian finance giant Macquarie Group.
DESRI claims to have a project platform with more than 6GW of gross capacity on an alternating current basis in operation or under construction. There is also 4GW of contracted pre-construction projects and a development pipeline of more than 25GW.
DESRI has long-term PPAs in place with a diversified base of off-takers, including corporates, utilities, and co-ops in 24 states. The DESRI platform will complement MAM’s 12GW operational project capacity globally.
“With the growth of the renewable energy market, suppliers and customers are seeking trusted partners that can scale and consolidate the market,” said William Demas, head of MAM Green Investments for the Americas.
“We believe that this partnership with DESRI well-positions Macquarie Asset Management to capture this opportunity and help accelerate the transition to net zero,” he added.
Macquarie is also making waves in US offshore wind with portfolio company Corio Generation, which is co-owner of project developer Attentive Energy.
DE Shaw is best known as the former employer of Jeff Bezos, founder of Amazon.
DESRI made headlines in July 2023 when it announced financial close and began construction of a solar and battery storage facility in the US state of New Mexico that will interconnect to the electric grid using existing infrastructure from a retired coal-fired power plant.
San Juan 1 with 200MW nameplate capacity on an alternating current basis and 100MW of battery storage is located adjacent to the former San Juan plant that closed the prior year.
DESRI plans to further leverage the plant’s electrical infrastructure to double solar plant capacity to 400MW later this decade.
President Joe Biden’s administration has been encouraging independent power producers and utilities to do exactly that at retired fossil sites where feasible to help accelerate the country’s transition to a net-zero carbon grid by 2035.
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