ENGIE, Hannon Armstrong to Jointly Invest in 2.3 GW Portfolio of U.S. Wind and Solar Projects, Including Projects in ERCOT

July 2, 2020

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Reporting by Paul Ring • ring@energychoicematters.com

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Hannon Armstrong Sustainable Infrastructure Capital, Inc. today announced a newly-formed partnership with a subsidiary of ENGIE S.A. that will own a 2.3 gigawatt (GW) portfolio of wind and utility-scale solar assets.

On commissioning, the 2.3 GW portfolio will be comprised of 1.8 GW of onshore wind and 0.5 GW of utility-scale solar photovoltaic (PV) projects (13 projects in total) located in five states.

"Hannon Armstrong will participate in the cash flows from the operations of this diversified portfolio of renewable energy projects, while ENGIE will retain a controlling share in the portfolio and continue to manage the assets," Hannon said

"The U.S. is a key growth market for our renewables business, where we are accelerating fast, from 0 MW in 2018 to 2 GW that should be commissioned in 2020. We have a strong pipeline of opportunities and a solid development and operational platform to grow from," said Gwenaelle Avice-Huet, Executive Vice-President responsible for ENGIE Renewables business line and CEO of ENGIE North America.

The portfolio includes nine onshore wind and four utility-scale solar projects located in five states, representing 2.3 GW of gross generating capacity in aggregate. Under the agreement, Hannon Armstrong will take immediate ownership of 49% of 663 megawatts (MW) from four operating onshore wind projects. The remaining 1.6 GW of projects (five onshore wind and four utility-scale solar PV projects) currently under construction will be transferred into the partnership upon commissioning.

Assets are located in the Electric Reliability Council of Texas (ERCOT), Midcontinent Independent System Operator (MISO), PJM Interconnection (PJM), and Southwest Power Pool (SPP).

"With a weighted average contract life of 13 years, the portfolio's cash flows are contracted with highly creditworthy off-takers who enjoy a weighted average credit rating of A+, including Amazon, Allianz, Ingersoll Rand, Microsoft, T Mobile, Target, Walmart, and Xcel Energy," Hannon said

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