NRG to buy Green Mountain Energy

• 14 years ago (2010-09-17)
• Junior Isles

North America 1026 Nuclear 665 Renewables 780

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NRG Energy, a US power generation company, is to acquire Green Mountain Energy (GME), a retail provider of clean energy products and services, underlining the interest among generators to expand their renewable energy portfolios.

The $350m cash deal will add to solar and wind projects to complement NRG’s traditional fuel sources, which range from nuclear to coal and natural gas.

This deal marks the second time this month that a US power supplier has bought into the renewables sector following the announcement by Excelon of its intention to buy John Deere Renewables.

NRG added to its renewables portfolio earlier this year, when it acquired South Trent Wind, a wind farm in Texas, for $111m.

“A permanent and fast-growing portion of the American population is seeking to live sustainably across all key phases of their lifestyle, including the energy they use in their homes, at work and in their personal transportation,’’ said David Crane, NRG president and chief executive.

“Increasingly, NRG, with our expanding portfolio of wind, solar and biomass initiatives, working with and through Green Mountain, is poised to become the clean energy provider of choice for Americans who want to make a difference for the environment,’’ he said.

NRG said the acquisition would contribute $70 million to its earnings before interest, taxes, depreciation and amortisation annually. The deal is expected to close mid-November.