Sweden's Eolus selling 750-MW solar-battery project in Arizona

Swedish renewables developer Eolus Vind AB (STO:EOLU-B) said on Friday it has clinched a deal to offload a mid-stage US development project with 750 MW of initial aggregate solar generation and battery storage capacity.

The particular scheme, located in the state of Arizona, was purchased by a US-based portfolio company backed by a large publicly traded global private equity investment firm. It has bought all membership units in the project from the Swedish developer for an estimated consideration ranging between USD 104 million (EUR 107m) and USD 190 million.

Under the arrangement, Eolus has received an initial USD 12 million and will get further payments in instalments, depending on the project’s progress and the achievement of certain milestones related to its development and financing. The vendor will obtain a large portion of the total sum once construction has been initiated, with the whole amount to be distributed within the 2023-2025 period.

The proposed solar-storage complex will go online in 2025 and will have an annual output of 1,000 GWh.

Eolus, which is mainly operating in the wind power segment, said that the transaction will be the third project divestment in the US and its first of a combined solar and storage project.

“More than a third of our total project portfolio is in the US and we are well positioned to take part in the increase in renewable energy projects [..],” said CEO Per Witalisson.

(USD 1.0 = EUR 1.029)

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