Canada’s Brookfield Invests $2 Billion in Scout Clean Energy, Standard Solar

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Brookfield Renewable, which owns, operates and develops renewable power, together with its institutional partners, has announced two investments in the US renewable energy sector. Brookfield will acquire Scout Clean Energy for $1 billion with the potential to invest an additional $350 million to support the business’ development activities. It also announced the closing of its acquisition of Standard Solar for a consideration of $540 million with the potential to invest an additional $160 million to support the business’ growth initiatives.

Brookfield informed that both Scout and Standard Solar will continue to operate as independent businesses within the Brookfield Renewable US platform. The transactions will be invested through the Brookfield Global Transition Fund I (BGTF I), which it claims to be the largest fund in the world focused on the energy transition.

The official announcement by Brookfield held that Scout’s portfolio includes over 1,200 MW of operating wind assets, including 400 MW managed on behalf of third parties, and a pipeline of over 22,000 MW of wind, solar and storage projects across 24 states. Almost 2,500 MW of the projects are under construction and advanced-stage projects.

Brookfield also said that Standard Solar is an owner and operator of commercial and community distributed solar. The company has about 500 MW of operating and under construction contracted assets and a development pipeline of almost 2,000 MW.

Connor Teskey, CEO of Brookfield Renewable, said, “We underwrote both transactions without the benefit of the Inflation Reduction Act so the additional incentives now available represent a significant boost to each business. Our development pipeline in the United States is now close to 60,000 MW and is well diversified across wind, utility-scale solar, distributed generation, and energy storage.”

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Michael Rucker, Founder and CEO, Scout Clean Energy, said, “With the recent passage of the Inflation Reduction Act, we believe now is the right time for Scout to move into our next phase of expansion with a highly respected and experienced partner, like Brookfield Renewable.”

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Scott Wiater, President & CEO of Standard Solar, said, “Through this acquisition, which provides additional large-scale access to capital, Standard Solar is poised for massive growth, enabling us to contribute in an even more significant way to the clean energy transition.”

Upbeat for RE Investments in North America

Brookfield Renewable has also made other key investments during 2022 that would include a $650 million acquisition of a leading solar and battery storage developer with a high quality development pipeline of 20,000 MW of utility-scale solar and energy storage projects across key markets in the US including the mid-Atlantic, Midwest and Southeast.

It will also undertake carbon capture and carbon sequestration by investing up to $750 million on a project by project basis into Entropy and a joint venture with California Resource Corporation, two leading carbon capture and sequestration platforms in Alberta and California, respectively.

Taken together, the Brookfield Global Transition Fund has invested or allocated $3.5 billion for clean energy investments and follow-on capital in North America in 2022.