LS Power, a prominent developer of North American power and energy infrastructure projects, has struck a deal to acquire a portfolio of U.S. onshore wind farms from bp Wind Energy North America. The agreement, announced on July 18, includes approximately 1,700 MW of operating wind power generation capacity from 10 projects spread across seven states and Hawaii.
The acquisition will bolster LS Power’s existing portfolio, which comprises 21,000 MW of operating assets and over 780 miles of high-voltage transmission lines. Additionally, the company has more than 350 miles of transmission infrastructure currently under construction or in development. The transaction is expected to close by the end of 2025.
Once the acquisition is finalized, bp Wind Energy will be integrated into LS Power’s portfolio company Clearlight Energy, which focuses on renewable power generation in the U.S. and Canada. The deal will increase Clearlight Energy’s operating fleet to about 4,300 MW, further diversifying its operations beyond its existing wind, solar, and battery storage fleet.
Paul Segal, CEO of LS Power, emphasized the company’s mission to solve complex energy problems and develop a cleaner, more reliable, and affordable energy ecosystem. “Today’s announcement represents a material investment in reaching that goal,” Segal stated. He highlighted that the acquisition will broaden Clearlight Energy’s geographical reach and support the company’s strategy to make energy more efficient, affordable, and available.
William Lin, bp EVP for gas & low carbon energy, noted that while low-carbon energy plays a role in bp’s portfolio, the company is rationalizing and optimizing its assets to generate value. “We have concluded we are no longer the best owners to take [the onshore U.S. wind business] forward,” Lin said. He expressed pleasure in reaching a mutually beneficial deal with LS Power and looked forward to a smooth transition of ownership.
The bp wind farms included in the deal are located in Indiana, Kansas, South Dakota, Colorado, Pennsylvania, Hawaii, and Idaho. They provide electricity to more than 15 off-takers. The specific facilities involved are Fowler Ridge 1 and 3 in Indiana, Flat Ridge 1 and 2 in Kansas, Titan in South Dakota, Cedar Creek 2 in Colorado, Fowler Ridge 2 in Indiana, Mehoopany in Pennsylvania, Auwahi in Hawaii, and Goshen 2 in Idaho.
Jeff Norman, CEO of Clearlight Energy, expressed enthusiasm about welcoming bp Wind Energy to the Clearlight family. He noted that the acquisition aligns with the company’s long-term value creation and growth strategy, accelerating the transition to a cleaner future. Norman emphasized that bp Wind Energy will have the resources to reach its full potential within an organization focused on natural energy solutions.
Segal reiterated LS Power’s commitment to advancing American energy infrastructure holistically. He stated that the new assets will expand the company’s renewable energy presence and help meet growing energy demand across the U.S. Segal looked forward to partnering with the talented teams operating these assets to drive value for stakeholders.
This acquisition underscores a significant shift in the renewable energy landscape, with major players strategically realigning their portfolios to focus on core strengths and optimize value. As LS Power integrates these wind farms into its portfolio, the deal could set a precedent for similar transactions in the sector, potentially influencing how companies approach renewable energy investments and operations. The transaction also highlights the ongoing consolidation in the renewable energy market, as companies seek to scale up their operations and enhance their competitive positioning. This trend could accelerate the deployment of renewable energy projects, contributing to the broader goals of energy transition and decarbonization.