Ares acquires majority stake in $1bn renewable energy portfolio

Ares Management Corporation has acquired a majority stake in a 384 megawatts (MW) solar and storage portfolio from EDP Renewables (EDPR), a global renewable energy infrastructure manager.

Ares Management has acquired 80% stake in the portfolio via an Ares Infrastructure Equity fund, where the total estimated enterprise value for 100% at the start of operations amounts to approximately $1.1 billion (US$800m).

The portfolio includes 200MW of solar and 184MW of battery energy storage in California. The solar capacity is contracted through a 20-year power purchase agreement, and the storage capacity has a 20-year capacity tolling agreement.

"We are pleased to expand our relationship with EDPR through our investment in this portfolio, which combines utility-scale solar generation and battery storage supported by long-term contractual arrangements," Ares Infrastructure Equity managing director Josh Bellet said.

"The transaction reflects our focus on providing flexible capital to high-quality, essential infrastructure assets with durable cash flows, while contributing to the buildout of a more reliable and resilient US power system."

Meanwhile, EDPR North America chief executive Sandhya Ganapathy added: "This transaction highlights the strength of our business and the confidence leading investors have in our long-term growth strategy."

"By partnering with Ares, we are further strengthening our ability to accelerate renewable energy development and create lasting value for our stakeholders."

The transaction builds on Ares Infrastructure Equity's previously announced investment in a 1632MW diversified energy portfolio from EDPR in 2025. That portfolio included 1030MW of solar, 402MW of wind and 200MW of storage capacity across four US power markets.

In November last year, QIC became the exclusive partner of EDPR to deliver a renewable energy project in Queensland's Toowoomba region. QIC said the partnership is a significant step to offer stable revenue stream for the institution.