Jennifer Runyon, Managing Editor, RenewableEnergyWorld.com
August 21, 2012 | 0 Comments
California, USA -- The world of mergers, acquisitions and strategic investments got a little bit more interesting this week with the announcement that enXco, once a winner of a RenewableEnergyWorld.com Excellence in Renewable Energy Award, will become EDF Renewable Energy. The name change is a result of its investment partner and 50 percent owner, EDF Energies Nouvelles, becoming fully owned by its parent company EDF Group.
Here’s a bit more of the history of the transaction. Ten years ago, EDF Energies Nouvelles, the EDF subsidiary specializing in renewable energy, acquired enXco, helping the company to grow throughout the United States, Mexico and Canada. At the time of the acquisition, the EDF group (Electricité de France) owned 50 percent of EDF Energies Nouvelles. EDF acquired the remaining 50 percent of EDF Energies Nouvelles in August 2011, and enXco is now fully integrated within the group under a new name, EDF Renewable Energy.
EnXco has two business units, one that focuses on operations and maintenance (O&M) of existing power plants and another that develops renewable energy plants. EDF Renewable Energy is maintaining the delineation between the development group and the O&M group - formerly enXco Service Corporation - by changing the name of the O&M group to EDF Renewable Services. The services division will continue to perform all required O&M for wind and solar energy projects, according to a company press release. The company has more than 6 gigawatts of power under contract.
The closer alignment to the EDF group allows EDF Renewable Energy and EDF Renewable Services to capitalize on shared knowledge, financial strength and long-term stability, says the company.
EDF Renewable Energy specializes in wind, solar, biomass and biogas project design, development, construction, operations and maintenance. It develops, builds, owns and operates renewable energy projects in the U.S. for its own account as well as for third party ownership.
According to financial analysts, mergers, acquisitions and strategic investments will continue in the renewable energy space for some time as larger companies eye developers who have large pipelines of signed “shovel-ready” contracts but might lack the cash needed to go through with the projects.
Lead image: Large solar farm via Shutterstock