American Electric Power has finalized the sale of its 1,365 MW renewables portfolio to IRG Acquisition Holdings, a partnership owned by Invenergy, CDPQ and funds managed by Blackstone Infrastructure, at an enterprise value of $1.5 billion including project debt.
AEP netted $1.2 billion in cash after taxes, transaction fees and other adjustments.
The portfolio includes 14 projects made up of 1,200 MW of wind and 165 MW of solar in 11 states. Renewable power from the projects is contracted under long-term agreements with other utilities, corporations and municipalities.
AEP said it remains committed to “de-risking the company and prioritizing investments” in its core regulated businesses. Proceeds from the sale will be directed to a pipeline of projects to advance the utility’s clean energy transition, among other purposes.
The utility plans to invest some $40 billion over the next five years in its regulated wires and generation business with a focus on adding 17,000 MW of new generation resources and more resilient, efficient transmission and distribution infrastructure.
AEP signed an agreement to sell the wind and solar assets in February 2023, one year after announcing its plan to shed the portfolio.
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