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Revolve Renewable Power Corporation, a developer of utility-scale solar, wind, and battery storage projects, announced the sale of its 1,250 MW of solar plus storage projects to ENGIE IR Holdings, a wholly owned subsidiary of ENGIE following the signing of a share purchase agreement.
The sale includes the Parker solar and storage project of 250 MW capacity and the Bouse solar and storage project with 1,000 MW capacity.
Both projects are located in the La Paz County of Arizona, spread across lands managed by the Bureau of Land Management.
The Parker project is close to existing transmission infrastructure and accessible through the existing state road network. It is expected to help electrify approximately 300,000 households in the region.
Revolve started the greenfield development for the Bouse project in early 2021. It is expected to generate a potential capacity to power around 1.2 million homes.
The total consideration payable by ENGIE is within the range of guidance previously provided by the company for the sale of utility-scale development assets and includes an upfront payment of $2 million.
The rest of the consideration will be taken into account when each of the projects has completed the following development milestones:
- completion of further interconnection studies
- issuance by ENGIE of a notice to proceed with construction works to the applicable project developer, and
- on the commissioning date, when the project has been synchronized to the grid and can deliver all of its installed capacity to the grid
The first of these milestones is expected to be achieved in 2023 when further interconnection studies are issued.
On completion of the transaction, ENGIE would have acquired 100% of the shares in Revolve Renewable AZ and Revolve Parker Solar on a cash and debt-free basis and will be responsible for all future development costs and other financial liabilities of the projects.
Revolve’s CEO Steve Dalton said, “The sale of projects to ENGIE successfully demonstrates our development approach as well as our strategy in working with experienced utility partners to deliver significant returns for our shareholders. The transaction will provide the company with additional resources to advance its remaining development portfolio, while also evaluating opportunities to add further greenfield project opportunities to its active development portfolio in the near term.”
In October last year, ENGIE acquired a 6 GW portfolio of solar, paired storage, and standalone battery storage capacity from Belltown Power to boost its U.S. development pipeline.
In December 2022, Sungrow signed a contract with ENGIE to supply a 638 MWh liquid-cooled energy storage system solution to Chile.