(Credit: RWE)Renewable energy giant RWE AG has successfully acquired all shares of Con Edison Clean Energy Businesses, Inc. (Con Edison CEB) from Consolidated Edison, Inc. within just five months since the transaction was announced. The acquisition has been approved by all relevant authorities, allowing RWE to become the fourth-largest renewable energy company in the United States and the second-largest solar owner and operator in the country, with business activities now spanning across the majority of US states. The newly created company, named RWE Clean Energy, LLC (RWE Clean Energy), is focused on driving RWE's growth in onshore wind, solar energy, and battery storage.
With a portfolio of 8 gigawatts (GW) of renewable energy projects and a development platform of over 24 GW, RWE Clean Energy has one of the largest development platforms in the US.
RWE Clean Energy currently operates a well-balanced renewable energy portfolio with 8 GW of installed capacity, with 60% in onshore wind and 40% in solar. The company has ambitious growth plans and a project pipeline of over 24 GW in onshore wind, solar, and battery storage. RWE is also expanding its global offshore wind activities, particularly in the US market, where it has secured offshore wind sites with the potential to host a total of about 3.9 GW (pro rata RWE) installed capacity.
RWE AG financed the acquisition of Con Edison CEB, which was valued at $6.8 billion, through a combination of debt instruments and an equity capital measure. The equity was raised by issuing a mandatory convertible bond to a subsidiary of QIA (Qatar Investment Authority), with an aggregate principal amount of € 2.4 billion. Upon conversion, the bond is expected to represent just under 10% of RWE AG's existing share capital, approximately 9.09% post-conversion. The conversion is expected to occur in the first quarter of 2023.
RWE is focusing on growing its renewables business in the US as part of its plan to become carbon neutral by 2040. RWE Clean Energy, which focuses on onshore wind, solar parks, batteries, and hydrogen, is a key contributor to RWE's US growth strategy. With RWE Clean Energy, RWE has significantly expanded its presence in the US, operating in many states across the country.
In addition to onshore wind, solar, and batteries, RWE is also developing offshore wind projects in the U.S. RWE, in partnership with National Grid Ventures, secured a lease for OCS-A 0539 in the New York Bight, which has the potential to host up to 3.2 GW of capacity (2.3 GW for RWE). RWE also secured OCS-P 0561 in the California floating offshore wind auction, providing the potential for up to 1.6 GW of capacity. RWE has experience in floating offshore wind technology from participating in multiple floating demonstration projects in Norway, Spain, and the US.
