RWE Renewables Americas will acquire Con Edison Clean Energy Businesses in a deal valued at $6.8 billion.
Their parent companies, Consolidated Edison and RWE AG, announced the agreement Saturday. It is expected to close in the first half of 2023.
Con Ed CEO Timothy P. Cawley said in a news release that the move will allow the utility to concentrate on its core operations.
“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.”
Con Ed also said it will continue to invest in clean energy transmission projects, building electrification, energy efficiency, electric vehicle infrastructure, battery storage and other technologies.
Con Edison Clean Energy Businesses operates more than 4 GW of renewable energy projects in North America through its three primary subsidiaries, Con Edison Development, Con Edison Energy and Con Edison Solutions.
RWE, based in Germany, said the Con Ed acquisition will nearly double its capacity in the U.S., give it a broader geographic footprint and expand its project pipeline to include more than 24 GW of onshore wind, solar and battery storage.
RWE is also expanding its offshore wind development efforts to the U.S. Earlier this year, it and partner National Grid submitted a successful $1.1 billion bid to secure OCS-A 0539, the largest offshore wind lease in the New York Bight. It is also a partner in an 11-MW demonstration project planned to test floating turbines in the Gulf of Maine.
RWE’s CEO and CFO have scheduled an investor and analyst conference call Oct. 4. The company said in a news release that the acquisition is a milestone in its growth plans in the U.S., a large and fast-growing market for renewables that recently got a 10-year stabilizing boost in the form of the Inflation Reduction Act.
“The unique combination of complementary portfolios in onshore wind, solar and batteries creates one of the leading renewable companies in the U.S. market,” RWE CEO Markus Krebber said in a news release. “The combined development pipeline, one of the largest in the U.S., provides tremendous opportunities for sustainability and value accretive growth, backed by a strong financial position.”
RWE Renewables Americas has developed more than 3.8 GW of renewable capacity in North America since 2007.
Con Ed said the transaction is subject to customary closing conditions, including expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and approvals by the U.S. Committee on Foreign Investment and FERC.
