Atlantica Announces the Acquisition of a Development Platform in the U.S.
Rhea-AI Summary
Atlantica Sustainable Infrastructure (NASDAQ: AY) has completed the acquisition of a development platform in the United States. The acquired platform includes approximately 1.1 GW of solar and wind projects under development in the MISO and SPP regions, spanning Illinois, Colorado, Mississippi, and Texas.
This acquisition complements Atlantica's existing development portfolio, which was previously focused on CAISO and MISO regions. With this addition, Atlantica's U.S. development portfolio now comprises approximately 2 GW of solar and wind projects and 8.5 GWh of storage. The platform includes an experienced development team that joins Atlantica's existing workforce of over 300 people in the US who manage and operate renewable energy assets.
Positive
- Expansion of development portfolio by 1.1 GW of solar and wind projects
- Geographic diversification into new regions (MISO and SPP)
- Acquisition includes experienced development team
- Strengthens existing U.S. presence and development capabilities
Negative
- None.
Insights
The acquisition of a 1.1 GW development platform marks a strategic expansion for Atlantica, nearly doubling their U.S. development portfolio to 2 GW of solar and wind projects plus 8.5 GWh of storage capacity. The geographic diversification into MISO and SPP regions through projects in Illinois, Colorado, Mississippi and Texas reduces concentration risk and taps into markets with growing renewable energy demand.
The MISO region is particularly noteworthy as it's experiencing significant transmission expansion and renewable integration opportunities. The acquisition strengthens Atlantica's competitive position by adding experienced development personnel and complementary assets to their existing 300-person U.S. team. This vertical integration enhances project execution capabilities and potential returns by capturing development premiums.
For investors, this represents a calculated move into earlier-stage project development, which typically offers higher returns but comes with increased development risks. The diversified geographic footprint across multiple power markets provides natural hedging benefits and multiple paths to value creation.
The timing of this acquisition aligns with favorable market dynamics in the U.S. renewable sector. The MISO and SPP regions are experiencing substantial growth in renewable energy demand, driven by corporate sustainability goals and state-level clean energy mandates. The development platform's strategic locations in states with strong renewable energy policies and robust transmission infrastructure development plans enhance the probability of successful project execution.
The platform's development portfolio focuses on solar and wind projects, which benefit from the Inflation Reduction Act's tax incentives and have seen declining costs. The addition of storage capabilities is particularly valuable as grid integration challenges increase the premium for dispatchable renewable power. This positions Atlantica to capitalize on the growing demand for hybrid renewable plus storage projects, which typically command higher power purchase agreement prices.
Atlantica Announces the Acquisition of a Development Platform in the U.S.
December 19, 2024 – Atlantica Sustainable Infrastructure plc (NASDAQ: AY) (“Atlantica” or the “Company”), announced today that it has completed the acquisition of a development platform in the United States. The platform includes approximately 1.1 GW of solar and wind projects under development located in the MISO and SPP regions, including projects in Illinois, Colorado, Mississippi and Texas.
The new platform complements Atlantica’s own development portfolio which prior to this acquisition included projects located mostly in the CAISO and MISO regions. The new portfolio reinforces Atlantica’s growing presence in the MISO region, where Atlantica has been developing storage and solar projects during the last few years. With this addition, Atlantica’s development portfolio in the United States consists of approximately 2 GW of solar and wind projects and 8.5 GWh of storage.
The new platform includes an experienced small development team that complements Atlantica’s existing team in the United States and positions the Company to continue capturing growth opportunities.
Atlantica has a team of over 300 people in the US who manage and operate a fleet of solar, wind, geothermal and storage assets and who are developing new renewable energy projects.
About Atlantica
Atlantica Sustainable Infrastructure plc is a sustainable infrastructure company that owns a diversified portfolio of contracted renewable energy, storage, efficient natural gas, electric transmission and water assets in North & South America, and certain markets in EMEA (www.atlantica.com).
| Chief Financial Officer Francisco Martinez-Davis E ir@atlantica.com | Investor Relations & Communication Leire Perez E ir@atlantica.com T +44 20 3499 0465 |
FAQ
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