Exus to acquire 625MW New Mexico solar portfolio
Exus North America, a renewables asset management and development firm, has announced its acquisition of New Mexico Renewable Development LLC (NMRD), a 15-project portfolio of solar farms in the state totalling 625 megawatts. The sale of the portfolio, owned 50/50 by energy holding company PNM Resources (PNM) and major utility American Electric Power (AEP), is expected to close in February 2024.
Upon completion of the acquisition, Exus will assume all ownership, development, construction, and operational responsibilities across all projects. This portfolio currently consists of nine operational projects totalling 185 megawatts and six in development with an estimated total output of 440 megawatts — a significant contribution to the State of New Mexico’s target of a 100% clean energy mix by 2040.
Solar energy has a notably high potential in New Mexico. As one of the highest rated states for annual sunlight hours, it is rapidly climbing the ranks in solar power generation as more projects are installed and the local solar market becomes more competitive. A geography of expansive plateaus also makes it ideal for the construction of well-sited and low-impact projects.
Capitalizing on this potential, the portfolio provides Exus with operating assets underpinned by long-term Power Purchase Agreements ("PPAs") in the New Mexico market, as well as yet-to-be-built projects set to undergo development by Exus going forward. Exus’ extensive history and expertise in renewables development, construction, operations, and asset management will allow them to maximize value across the portfolio.
Jim Spencer, President & CEO, Exus North America, said: “New Mexico has a robust commitment to growing its renewable energy industry. We’re keen to contribute to furthering that mission. With this latest acquisition, we'd like to thank PNM and AEP for the opportunity to complete the development of a set of resilient solar projects that will bolster New Mexico’s renewable energy capacity and deliver even more clean power to consumers and businesses.”
Partners Group, a leading global private markets firm, acting on behalf of its clients, agreed to invest up to $1 billion in Exus at the end of 2023. This transaction represents part of a growing pipeline of planned project acquisitions for Exus in North America, adding to an existing 1.8 gigawatts of US solar assets under management.