Engie has reached an agreement with major shareholders to purchase Broad Reach Power LLC, a private equity-backed US battery company, as part of a strategy to expand into electricity storage and renewable energy.
The purchase agreement reached with Apollo Global Management Inc. and EnCap Investments will strengthen Engie's presence in states such as Texas and California, which are working to strengthen energy security after suffering blackouts in recent years. The French electric company has announced that the operation will mean a reduction of its net debt of 1,600 million dollars.
The acquisition brings Engie 350 megawatts of operating assets, as well as 880 megawatts under construction and another 1.7 gigawatts of advanced-stage projects, the company said. The French utility already has renewable energy and energy storage operations in the United States.
Power companies are increasingly adding battery capacity to store growing wind and solar production and help grid operators meet demand when power spikes or other power sources fail. Texas' grid, which collapsed drastically during the 2021 storms, is put under periodic stress from increased summer consumption, while California is building storage capacity along with more solar parks.