ConEd Agrees to Sell Clean Energy Business for $6.8 Billion to RWE
German energy company says the acquisition will nearly double its U.S. renewable energy position
Consolidated Edison Inc. ED -2.17% has agreed to sell its renewable energy business to German energy company RWE AG RWEOY -1.27% for $6.8 billion, the companies said Saturday.
The deal nearly doubles RWE’s renewable energy portfolio in the U.S. and will make 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 development.
“The unique combination of complementary portfolios in onshore wind, solar and batteries creates one of the leading renewable companies in the U.S. market,” RWE Chief Executive Markus Krebber said in a statement.
ConEd, an electric and natural-gas utility serving about 10 million people in New York, earlier this year indicated its intent to sell its renewable energy business as it looks to invest heavily in its regulated utility operations.
The company said it would now forgo a plan to issue up to $850 million in equity this year and withdrew its guidance for 2023 and 2024.
“The transaction we announced today will allow Con Edison to sharply 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.
A number of U.S. utilities have sold competitive generation portfolios in recent years as they work to improve earnings and make major infrastructure investments. Public Service Enterprise Group Inc., which serves 2.3 million electric customers and 1.9 million gas customers in New Jersey, earlier this year sold a fleet of conventional power plants and last year sold a portfolio of solar farms with the intent to focus more closely on its regulated utility business.