US-based energy development company LS Power, an affiliate of Quattro Solar, has signed an agreement to acquire 25 solar power facilities.
The facilities, whose combined capacity is 467MWdc, will be acquired from publicly traded energy firm Public Service Enterprise Group (PSEG).
The PSEG Solar Source portfolio is spread across 14 states and five regional transmission organisations (RTOs).
As of 31 March, the net carrying value of the assets and liabilities to be sold is almost $500m.
The portfolio currently has power off-take agreements with a variety of utilities, electric cooperatives and other large energy suppliers.
LS Power CEO Paul Segal said: “Today’s announcement underscores LS Power’s commitment to scaling a diversified development and operating platform that will drive the decarbonisation of our economy.
“The addition of these solar projects is part of LS Power’s expanding effort to enable the evolution of a cleaner power grid.”
The non-core generation portfolio sale is part of PSEG’s Strategic Alternatives process, which aims to explore options for PSEG Power’s non-nuclear generating fleet.
It also complements LS Power’s growing family of clean energy investments, which include the EVgo electric vehicle charging network, the energy management solutions company CPower Energy Management, and the Prime Renewable Fuels gas development and operating platform.
PSEG chairman, president and CEO Ralph Izzo said: “This sale marks a key milestone in our Strategic Alternatives process as we continue our transformation into a primarily regulated utility.
“We also intend to continue our efforts to preserve our existing carbon-free nuclear fleet and to seek regional growth opportunities in offshore wind projects that fit with PSEG’s Powering Progress strategy.”
The deal is subject to customary regulatory approvals and expected to close in the second or third quarter of this year.