Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI), an investor in climate solutions, has closed two new programmatic investments in grid-connected renewable energy assets developed, owned and operated by The AES Corp.
Per the agreement, signed on December 22, 2022, HASI will make a common equity investment in an approximately 1.3 GW portfolio of operating solar and wind projects located across six states: Arizona, California, New York, South Dakota, Utah and Virginia. Additionally, HASI is financing land owned by AES for a solar project and a standalone battery energy storage system in California.
“We are thrilled to expand our programmatic relationship with AES through this new partnership, which is designed to encourage additional investments over the next several years,” says Susan Nickey, chief client officer of Hannon Armstrong. “AES’ purpose to accelerate the future of energy and create a sustainable future is totally aligned with our mission as a climate positive investor.”
“AES is committed to accelerating a greener, smarter energy future,” adds Leo Moreno, president of AES Clean Energy. “This investment creates an opportunity to expand our development of renewable energy projects, growing our portfolio of wind, solar and battery energy storage facilities across the U.S.”
In accordance with the terms of the equity investment in the renewable energy portfolio, HASI intends to acquire a 49% equity interest in the portfolio that includes 17 operating solar projects, and one wind project. With a weighted average remaining contract life of approximately 18 years, the portfolio’s cash flows are contracted with a diverse group of predominately investment-grade corporate, utility and municipal off-takers. AES will continue to own and operate the assets.