US-based solar and energy storage company Borrego has agreed to spin off and divest its development business to ECP, an energy transition-focused investor.
The financial terms of the deal were not disclosed.
The development business involved in the deal has a project portfolio of more than 8.4GW of solar and 6.4GW/25GWh of energy storage across the US.
After the closing of the deal, ECP will operate the acquired business as a standalone company. The business will be based in Lowell, Massachusetts, and will be led by its current development team.
Dan Berwick, who is presently serving as president of the development business, will become CEO of the new independent company.
ECP partner Andrew Gilbert said: “Borrego’s development business owns a best-in-class track record and project pipeline. We are thrilled to be partnering with Dan and team to help continue the company’s tremendous growth and success.
“At ECP, we believe the opportunity set in sustainable infrastructure is expanding rapidly as the world continues to advance electrification as a means to decarbonise. We’re excited to join forces with Borrego’s development business to create ECP’s eleventh renewable platform and fourth standalone solar platform.”
Borrego said that it will continue investing in its engineering, procurement and construction (EPC) and operations and maintenance (O&M) business divisions.
The EPC unit is engaged in construction of utility-scale and community-scale solar and energy storage projects. It is said to have over 450MW of solar projects and 200MW of energy storage projects that are presently in design or construction.
Borrego also offers third-party O&M services for distributed generation and utility-scale solar power plants. Currently, its team is said to manage the performance of 1.4GW and more than 1,000 solar operating assets, the majority of which were constructed by other EPCs.
Borrego CEO Mike Hall said: “We are seeing tremendous opportunities in Borrego’s EPC and O&M services. This sale ensures we can invest in our people and build the technology that will position them to capitalise on what will be a record-breaking decade for solar and storage deployment in the United States.”
