sPower to become part of a leading renewables platform in the US
Salt Lake City— sPower, a leading renewable energy Independent Power Producer (IPP), announced an agreement by the Company’s owners, The AES Corporation (NYSE: AES) and Alberta Investment Management Corporation (AIMCo), to merge with AES’ US-based clean energy development business. AES’ wholly-owned clean energy development business includes AES Distributed Energy and a wind development team formerly part of Advance Energy. The merged business will represent one of the top renewables growth platforms and be focused on accelerating the safe, reliable transition to cleaner energy solutions in the US. As states, communities and organizations of all types make commitments and plans to reduce their carbon footprints, renewables are on track to be the fastest-growing source of electricity generation in the US in 2020. The merged sPower and AES clean energy business will work with its customers to co-create and deliver the smarter, greener energy solutions that meet their needs, including 24/7 carbon-free energy.
“We share our customers’ commitments to a more sustainable energy future. Together, we can create a safe, resilient and carbon-free grid,” said Andrés Gluski, AES President and Chief Executive Officer. “The merger of sPower with AES’ clean energy business will benefit customers by providing access to a broader portfolio of product offerings as well as an expanded highly skilled and experienced team to drive innovation at scale.” “sPower has been one of our key infrastructure platforms since our initial investment made in partnership with AES in 2017,” stated Kevin Uebelein, Chief Executive Officer of AIMCo.
“Our experience working with AES has shown that they are a world leader in delivering on customers’ sustainable energy needs, and the formation of this new renewables platform in the US will take that capability to an even higher level. On behalf of our clients and consistent with our investment mandate, we are excited about the value the next phase of our partnership will bring to our many stakeholders.” The merged renewables platform will bring together sPower’s and AES’ differentiated capabilities in solar, wind and energy storage to accelerate our customers’ energy transitions. “The leading renewables platform that sPower is today is a testament to the hard work of our people and the partnership we’ve had in place with AES and AIMCo,” said Ryan Creamer, CEO of sPower.
“As sPower merges with AES’ clean energy business in the US, we look forward to continuing to power our customers’ energy transitions in ways that also benefit the communities we operate in and our industry. I am excited to help transition the team to AES by the end of the year.” Future projects developed from the combined 12 gigawatts (GW) development pipeline will be owned 75 percent by AES and 25 percent by AIMCo, leveraging our successful partnership at sPower. Although there is no change in ownership of operating assets and backlog, the newly formed platform will manage the 2.5 GW of operating assets and the existing 2.6 GW contracted backlog. The transaction is expected to close in the next few months upon successful completion of customary closing conditions.