Alternative asset management firm Ares announced the acquisition an 80% stake in a 384 MW California-based solar and storage portfolio from renewable energy infrastructure developer EDP Renewables, in a transaction valuing the assets at the start of operations at approximately $0.8 billion.
The portfolio includes 200 MW of solar and 184 MW of battery energy storage in California, with the solar capacity contracted through a 20-year Power Purchase Agreement, and the storage capacity having a 20-year Capacity Tolling Agreement.
The transaction, made through an Ares Infrastructure Equity fund follows the acquisition last year by Ares of a 49% stake in a 1,632 MW portfolio of solar, wind and storage capacity across four U.S. power markets from EDPR.
Josh Bellet, Managing Director in Ares Infrastructure Equity, said:
“We are pleased to expand our relationship with EDPR through our investment in this portfolio, which combines utility-scale solar generation and battery storage supported by long-term contractual arrangements. The transaction reflects our focus on providing flexible capital to high-quality, essential infrastructure assets with durable cash flows, while contributing to the buildout of a more reliable and resilient U.S. power system.”
