National Grid has announced an agreement to acquire Minneapolis-based renewable energy developer Geronimo Energy.
National Grid has agreed to pay $100 million for the transaction, plus potential further payments subject to the development of Geronimo’s project pipeline. The acquisition will be led by National Grid’s competitive business unit, National Grid Ventures (NGV).
“National Grid is committed to the evolution and decarbonization of our energy system,” states Badar Khan, president of NGV. “Renewable power, such as wind and solar generation, is a core component of the future energy system. Strong, ongoing growth in renewable energy is fueled by robust demand and underpinned by significant reductions in the cost of renewable technologies, often making wind and solar generation among the cheapest forms of energy for consumers.”
Founded in 2004, Geronimo has developed over 2.2 GW of wind and solar energy projects that are operational or under construction. In addition, it has a multi-gigawatt development pipeline of wind and solar projects in various stages of development throughout the U.S.
Geronimo’s team will continue to be headquartered in Minneapolis, with satellite development offices and operational project facilities located throughout the country.
“We are very pleased to be joining National Grid, a leader in the industry that shares our corporate values and community focus,” comments Blake Nixon, CEO of Geronimo Energy. “With National Grid’s expertise and capital strength, Geronimo will be able to better deliver innovative and effective renewable energy solutions for our customers.”
National Grid is also progressing an agreement to acquire a 51% share in 378 MW of solar and wind generation projects developed by Geronimo (in operation and under construction) for $125 million. The projects, which have long-term power purchase arrangements in place, will be jointly owned by National Grid and the Washington State Investment Board (WSIB) and operated by National Grid. Once finalized, the joint venture with WSIB will have a right of first offer on future projects developed by Geronimo.
Both transactions are subject to various approvals. They are expected to close in the second quarter.
National Grid is one of the world’s largest publicly owned utilities. It serves more than 20 million people through networks in New York, Massachusetts and Rhode Island, and it owns and operates networks and systems that deliver electricity and gas across Great Britain.