Global Infrastructure Partners (GIP), the New York-based fund firm has acquired up to 16,000 MW of operating wind and solar assets in the U.S., from the private fund manager MAP Energy.
The acquisition was made through GIP’s fourth flagship fund, GIP IV. It was a 100% acquisition of MAP’s investment platform, team and renewable energy assets, the company announced this Wednesday.
Assets acquired include, as we said, 16,000 MW of operating solar and wind developments; as well as a nationwide development pipeline, managed through joint ventures with regional and national partners.
According to the statement, the transaction expands GIP’s global investment in renewables; which reaches up to 10 GW of operational assets, and 65 GW of further capacity, currently under development.
Overall GIP’s portfolio already includes $9 billion of equity investments throughout the sector.
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Acquisition by GIP would advance 15 years of work by MAP
About the acquisition, Adebayo Ogunlesi, chairman and managing partner of GIP, said: “We are excited to announce the acquisition of MAP’s world-class renewables business. MAP RE/ES has been one of the most successful investors in U.S. renewables.”
“It has created an attractive, extremely diversified portfolio that includes exceptionally high-quality operating cash flow from the royalty interests and the opportunity to invest additional capital in a leading development pipeline. We look forward to working with the team that built this highly successful business,” he concluded.
For Aaron Zubaty, CEO of MAP Energy, “partnering with a global leader in infrastructure investing that also shares our values and philosophy is a rare opportunity. Our team is delighted to collaborate with GIP. Together we’ll advance more than 15 years of work to date; as we continue the meticulous management and growth of our assets,” he said in a joint statement.
According to the International Renewable Energy Agency, renewable power has become increasingly cheaper than its fossil fuels counterpart; in 2019, more than half the renewable capacity added achieved lower power costs than the cheapest coal-fired power plants.
This may increase the rentability of such projects, making investments such as GIP’s relevant now more than ever, as North America’s recovery strategy focuses more and more on energy transition and feasible, climate-friendly projects.