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Germany’s RWE is poised to become the second-largest solar operator in the U.S., along with Consolidated Edison’s renewable energy business.
Photo:
Wolfgang Rathai/REUTERS
Integrated Edison Inc.
E.D -2.17%
It has agreed to sell its renewable energy operations to German energy company RWE. AG
RWEOY -1.27%
For 6.8 billion dollars, the companies said on Saturday.
The deal will double RWE’s renewable energy portfolio in the US, making it the second largest solar operator in the country, the company said in a statement. ConEd’s portfolio includes more than 10 gigawatts of renewable projects in operation or under construction.
“The unique combination of complementary portfolios in offshore wind, solar and batteries creates one of the leading renewable companies in the US market,” RWE CEO Markus Kreber said in a statement.
ConEd, the electric and natural gas utility that serves about 10 million people in New York, signaled its intention to sell its renewable energy business earlier this year as it seeks to invest more in integrated utility operations.
The company said it would abandon plans to issue up to $850 million in equity this year and cut its guidance for 2023 and 2024.
“The transaction we announced today will allow ConEdison to focus on our core utility businesses and the investments needed to lead New York’s ambitious clean energy transition,” CEO Timothy Cawley said in a statement.
Several U.S. utilities have sold competitive generation portfolios in recent years as they work to improve revenue and make major infrastructure investments. Public service organization group Inc.,
The company, which serves 2.3 million electric customers and 1.9 million gas customers in New Jersey, sold off a portfolio of solar farms earlier this year in an effort to sell off a fleet of conventional power plants and focus more on the utility business it acquired last year.
Write Katherine Blunt at Katherine.Blunt@wsj.com
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