American Electric Power (AEP) will sell its 1365 M portfolio of renewable assets to IRG Acquisition Holdings. The portfolio includes 14 projects with 1.2 GW of wind capacity and 165 MW of solar capacity across 11 US states. It is valued at $1.5 billion, which includes project debt.
IRG Acquisition Holdings is a partnership of Invenergy, CDPQ, and funds managed by Blackstome Infrastructure.
Julie Sloat, President and CEO of AEP, said: “We’re committed to de-risking the company and prioritising investments in our core regulated businesses. The proceeds from the sale will be directed to the significant pipeline of opportunities we have to enhance service for customers across our footprint and advance our clean energy transition.”
The deal is due to be closed in Q2 2023.
AEP said that it plans to add 1.7 GW of new generation resources, as well as new transmission and distribution infrastructure. It currently has around 31 GW of generating capacity, of which 6.9 GW is renewable. It aims to increase its renewable generation portfolio to around 50 per cent of its total capacity by 2032, and reach net zero emissions by 2045.