Ares Management purchases stake in EDPR assets for $2.9 billion

Ares Management announced on Monday that a unit of its Infrastructure Opportunities division had acquired a 49 percent stake in a diversified U.S. Renewable Energy Platform from EDP Renovaveis, valuing it at approximately $2.9 billion.

Since September 2024, Ares Infrastructure Opportunities funds have owned 5.7 gigawatts of capacity in 11 states and 5 U.S. markets.

Investment manager doubles down on renewable energy assets and infrastructure due to the rising demand for electricity, driven by data centers and rapid growth of artificial intelligence.

The EDPR deal consists of 10 assets that represent about 1,632 Megawatts (MW), including 1,030 MW solar, 400 MW wind, and 200 MW storage capacity in four U.S. markets.

All projects have signed long-term contracts for power purchase, with an average contract remaining duration of 18 years.

Ares stated that the transaction will expand its presence in important domestic power markets, and increase its exposure to fast growing clean energy segments.

EDPR is a renewable energy company with assets in Europe, North America South America and Asia Pacific. (Reporting from Vallari Srivastava in Bengaluru and Katha Kaalia; editing by Shinjini Ganuli)

(source: Reuters)