Elia completes acquisition of stake in US clean energy company energyRe Giga

Elia Group is acquiring a 35.1% share in energRe Giga Projects with a $400 million investment over the next three years.

The deal, which sees the Group expand its geographical scope, forms part of its growth strategy focussed on that country as well as Europe as it seeks to become an international energy company.

So far as part of the closing $250 million has been drawn out of the $400 million, with Elia Group WindGrid subsidiary serving as the designated holding entity.

The proceeds are to be fully committed to fund project developments in electricity transmission and renewable energy generation.

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In particular, the group will offer its expertise and experience in the development, construction, operation and maintenance of offshore transmission infrastructure, HVDC technology, transmission planning and congestion management to the partnership.

On the initial announcement of the acquisition in December, Catherine Vandenborre, then interim CEO of Elia Group, said: “With our first investment, WindGrid stands ready to be a steadfast ally seeking to proactively establish offshore grid infrastructure and support renewable energy developers in search of secure connections to onshore electricity networks.

“By harnessing our extensive expertise and engaging in co-investment ventures on the global stage, WindGrid is committed to playing a pivotal role in expediting the energy transition.”

Elia states energyRe Giga to be an established partner with a strong pipeline of projects and with a unique focus on transmission-led generation combining high voltage direct current (HVDC) transmission with emissions-free energy sources.

These include a 50% stake in Clean Path New York, a future 280km HVDC transmission line and 3.8GW onshore generation in New York, and a 40% stake in SOO Green, a future 560km transmission line from the MISO to PJM.

The company also has a minority stake in the 2.4GW Leading Light Wind offshore wind development project in the New York Bight, which was contracted in January by the New Jersey Board of Public Utilities.

energyRe Giga’s assets are sold upon completion of each project, with the opportunity to reinvest the capital to support further portfolio expansion.