Masdar, a leading renewable energy company, has successfully closed its acquisition of a 50% stake in Terra-Gen Power Holdings 2, a major US-based renewable energy independent power producer. The stake was acquired from Energy Capital Partners (ECP), a significant private investor in the US power and renewables sector, which fully exited its position in Terra-Gen following the transaction.
Igneo Infrastructure Partners, which previously held a 50% stake in Terra-Gen, will retain its ownership, making Masdar its new partner in the company.
Terra-Gen's operational portfolio includes 3.8 GW of wind, solar, and battery storage projects, with 5.1 GWh of energy storage capacity spread across 30 renewable power sites, primarily located in California and Texas. In addition, Terra-Gen is currently developing over 12 GW of renewable energy projects, including wind, solar, and battery storage in key US markets such as California, Texas, and New York. This pipeline includes 386 MW of wind and solar projects in Texas and California and 512 MWh of energy storage in California, expected to become operational in 2025.
Masdar's Chief Executive Officer, Mohamed Jameel Al Ramahi, highlighted the significance of this acquisition: “Terra-Gen's experienced management team and scalable platform make it the ideal partner, as we work to increase our presence and investment in the US as part of Masdar's commitment to a long-term strategy in this important market.”
Jim Pagano, CEO of Terra-Gen, added: “The finalisation of this deal cements a strong relationship between Masdar and Terra-Gen. Masdar is a great partner for Terra-Gen because of our shared focus on developing clean energy projects and our commitment to decarbonisation.”
This acquisition aligns with a broader initiative announced in January 2023, in which the UAE and US committed to allocating $20 billion for 15 GW of clean energy projects in the US by 2035, led by Masdar and a consortium of private investors under the Partnership for Accelerating Clean Energy (PACE).
