Con Edison signs $6.8 B deal to sell renewables portfolio
USA, New York: RWE AG has agreed to pay about $6.8 B for the renewable energy portfolio of Consolidated Edison Inc.
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USA, New York: RWE AG has agreed to pay about $6.8 B for the renewable energy portfolio of Consolidated Edison Inc.
Con Edison is abandoning plans to issue stock this year and has withdrawn its 2023 and 2024 guidance for equity raises.
RWE’s plan to buy Con Edison Clean Energy Businesses Inc. will add about 3 GW of operating capacity – 90 % of it solar – to the company’s portfolio, which will grow to about 7.2 GW.
“The transaction we announced today will allow Con Edison to sharply focus on our core utility businesses and the investments needed to lead New York’s ambitious clean energy transition,” said Timothy Cawley, chairman and CEO of New York-based Con Edison. “RWE, in turn, is well positioned to accelerate the growth of renewable energy across the United States.”
In a statement, RWE CEO Markus Krebber called the United States one of the world’s most attractive and fastest-growing markets for renewables and noted that the acquisition is expected to generate about $600 M EBITDA in its first year.
The deal between Con Edison and RWE is expected to close in the first half of 2023 and is being partly financed by the Qatar Investment Authority, which is investing more than $2.4 B in a convertible RWE bond that will, after conversion, give it a roughly 9 % stake in the German company. When completed, RWE will become the fourth-largest renewable energy company in the country and the No. 2 operator of solar projects. The combined organizations, RWE executives said, will employ about 1,400 people, about 500 of them coming from Con Edison’s clean energy group.
Cawley and his team said they intend to continue to invest in Con Edison’s clean energy priorities, which include electrification, energy efficiency, electric vehicle infrastructure and battery storage.
Source: T&D World
#Consolidated Edison Inc.#renewable energy business#RWE AG#sale#USA