UNITED STATES OF AMERICA —Ares Management Corporation has acquired an 80% stake in a $800 million solar and energy storage asset portfolio in California from EDP Renewables. The portfolio combines 200 MW of solar capacity with 184 MW of battery energy storage, structured under 20-year off-take and tolling agreements. EDP Renewables, a global renewable energy developer operating over 20 GW of installed capacity worldwide, will retain the remaining ownership stake while continuing to partner with institutional capital to support its expansion strategy.
This acquisition highlights a sustained shift among major asset managers toward revenue-backed clean energy infrastructure. By securing 20-year contracts, a Power Purchase Agreement for the solar generation and a Capacity Tolling Agreement for the battery storage, the investment secures predictable, long-term cash flows while mitigating merchant power price volatility in one of North America's most dynamic energy markets.
The deal reflects broader growth in hybrid renewable projects that integrate generation with storage capabilities to address grid reliability challenges. As Western power markets experience increasing intermittent generation from renewables, utility-scale storage infrastructure is becoming vital for maintaining grid stability, managing peak demand, and meeting stringent clean energy targets.
For institutional investors and energy developers, the transaction demonstrates the continued viability of capital-recycling strategies in the clean energy sector. By monetizing equity stakes in operational projects, developers can free up liquidity to fund pipeline developments, while private capital managers gain direct access to essential infrastructure assets essential for energy transition goals.
