Naturgy, a Spain-based gas and energy utility company, has entered into the U.S. renewable energy market by acquiring a U.S.-based solar and storage development platform Hamel Renewables.

The acquisition incorporates a portfolio of 8 GW of solar projects and 4.6 GW of energy storage projects, located across nine states of the United States. Of these projects, 25 with a total solar capacity of 3.2 GW and a storage capacity of 2 GW could be operational before 2026, the company said in a statement.

The company also plans to invest up to $1.8 billion over the next five years to operate 1.6 GW of solar energy projects by 2025. It also holds the option to develop the remaining pipeline totaling up to 8 GW of solar energy projects until 2030.

Naturgy also signed a five-year development agreement with Candela Renewables as part of the transaction. The agreement allows the development of solar and energy projects exclusively for Naturgy.

Francisco Reynes, Executive Chairman of Naturgy, said, “This transaction is a considerable step forward towards achieving our strategic objectives. In addition to this, we incorporate a portfolio of excellent projects in different stages of maturity, as well as a first-class team with a proven track record in the development of projects.”

There has been a slew of acquisitions in the solar energy space in the United States recently. This month,  Consolidated Asset Management Services acquired Belectric‘s solar operations and maintenance business, including its 141 operating sites across 11 states in the United States.

Similarly, Gibraltar Industries, a product manufacturer for the renewable energy markets, acquired Terrasmart and Sunfig to expand its solar energy portfolio. Terrasmart, a U.S.-based ground-mount solar racking technology provider, was acquired for $220 million, while Sunfig was acquired for $3.75 million in cash.

According to Mercom’s 2020 Q4 and Annual Solar Funding and M&A Report, there were 62 merger and acquisition deals globally in 2020, down from 65 in 2019. Most of the transactions involved in solar downstream companies.