Parent Of Utility With Retail Choice To Acquire Renewable Energy Developer
National Grid announced an agreement to acquire Geronimo Energy, a clean energy company based in Minneapolis, MN.
National Grid has agreed to pay $100m, with potential for further payments subject to successful development of the project pipeline.
This acquisition will be led by National Grid’s competitive business unit, National Grid Ventures.
"National Grid is committed to the evolution and decarbonization of our energy system. Renewable power, such as wind and solar generation is a core component of the future energy system. Strong, ongoing growth in renewable energy is fueled by robust demand and underpinned by significant reductions in the cost of renewable technologies, often making wind and solar generation among the cheapest forms of energy for consumers," said Badar Khan, president of National Grid Ventures.
Founded in 2004, Geronimo has developed over 2,200 megawatts of wind and solar energy projects that are operational or currently under construction, representing over 10% of all wind generation developed in the mid-west, and has a multi-gigawatt development pipeline of wind and solar projects in various stages of development throughout the United States.
Geronimo’s team will continue to be headquartered in Minneapolis, with satellite development offices and operational project facilities located throughout the country.
National Grid is also progressing an agreement to acquire a 51% share in 378MW of solar and wind generation projects developed by Geronimo (in operation and under construction) for $125m. The projects, which have long-term power purchase arrangements in place, will be jointly owned by National Grid and Washington State Investment Board (‘WSIB’), and operated by National Grid. Once finalized, the joint venture with WSIB will have right of first offer on future projects developed by Geronimo Energy.
Both transactions are subject to various approvals and expected to close in the second quarter of 2019.