Paris Solar Center, a solar PV and battery storage project developed by Invenergy, has been purchased by three Wisconsin utilities companies. The syndicate includes We Energies (75%), Wisconsin Public Service (15%) and Madison Gas and Electric (10%). The total acquisition cost totaled to $433 million. The project is expected to begin generating power by early Spring or Summer of 2023. The 200-megawatt system will generate enough electricity to power 60,000 homes annually.
We Energies
We Energies is an energy provider to Wisconsin and northern Michigan. The Company is looking to grow through acquisition and announced last year that they hope to spend upwards of $2 billion on new solar, wind, and battery storage projects by 2025. In spring 2021, they made an attempt to acquire 465MW Koshkonong Solar Energy Center in south-central Wisconsin for $649 million.
Wisconsin Public Service
Wisconsin Public Service provides energy to nearly 450,000 homes and businesses in Wisconsin and Michigan and is a subsidiary of WEC Energy Group (NYSE: WEC). Similar to We Energies, WEC has also turned to M&A as a source of growth. They are projecting to spend $1.9 billion on investments from 2022-2026 and currently have disclosed “long term purchase power agreements in place with creditworthy customers”. Additional wind infrastructure investments are below.
Madison Gas and Electric
Madison Gas and Electric is an energy provider based in Madison, WI. They generate and distribute electricity to ~300,000 customers in central and western Wisconsin. Madison Gas and Electricity is the primary asset of MGE Energy (Nasdaq: MGEE), a public utility holding company. MGE has been less acquisitive than its peers, but will likely have to transform its business through M&A as it looks to reduce its carbon output by 80% by 2030.
Overview
OverviewIn order to meet the goals of the Paris Agreement, it will be necessary to invest in solar and other clean energy sources. This will require an investment of $4 trillion per year by 2030. According to the Renewable Energy Laboratory, by 2030 solar panels could cover 3 million acres. This will provide landowners with an opportunity to make money off their land, and will also increase the number of landowners willing to participate in such projects.
