Ormat Technologies has acquired a portfolio of solar assets in four U.S. states from Enel Green Power North America subsidiary Enel SpA for $271 million, according to a Jan. 4 news release.
The acquired portfolio also includes two contracted operating geothermal power plants and one triple hybrid geothermal, solar photovoltaic (PV) and solar thermal power plant. The geothermal plant has approximately 40 megawatts (MW) of capacity; Solar PV has 20 MW; two solar assets have a nameplate capacity of 40 MW; and two greenfield assets are in development.
The assets are in Nevada, Utah, Connecticut and California and increase Ormat’s electricity segment generated portfolio to 1,215 MW.
The overall transaction was funded through available cash, in combination with $200 million in newly issued long-term corporate debt.
The acquisition is expected to be immediately accretive to both revenues and EBITDA. Ormat said it intends to further improve the performance of the acquired asset portfolio through a series of operational enhancement and optimization initiatives.
Doron Blachar, CEO of Ormat Technologies, said the close of the transactions will begin adding to the company’s shareholders.
“The acquired assets will be immediately accretive to Ormat’s profitability, and we expect to improve the generation, revenues and EBITDA performance through a series of value-enhancement initiatives, including the integration of Ormat’s own state-of-the-art equipment,” Blachar said.
Recommended Reading
Equinor Brings Solar Plant Online in Brazil
2024-03-08 - Equinor says the Mendubim solar plant will produce 1.2 terawatt hours of power annually.
EDF Renewables, SCPPA Sign PPA for Bonanza Solar
2024-02-28 - The site is expected to start delivering electricity to SCPPA’s customers by Dec. 31, 2028.
Emeren, Glennmont to Develop 155 MW of Battery Storage Projects
2024-03-15 - The collaboration between Emeren Group and Glennmont Partners marks a strategic move to enhance renewable energy storage capacity in the region.
TotalEnergies Cements Oman Partnership with Marsa LNG Project
2024-04-22 - Marsa LNG is expected to start production by first quarter 2028 with TotalEnergies holding 80% interest in the project and Oman National Oil Co. holding 20%.
Renewables’ Share of Deal Flow Up, But M&A Slowing
2024-02-13 - Abundant capital remains available for renewable energy projects, and developers are looking for investors to help get projects over the finish line, expert says.