Brookfield Renewable is investing up to $2bn (€2.03bn), on behalf of its global energy transition fund, to buy US renewable energy firms Scout Clean Energy and Standard Solar.

The NYSE and TSX-listed pure-play renewable power platform said the Brookfield Global Transition Fund I (BGTF I) fund is buying Scout for $1bn with a plan to invest an additional $350m ($270m in total net to Brookfield Renewable) to support the business.

Scout owns a 1.2GW portfolio of operating wind assets, including 400MW managed on behalf of third parties, and a pipeline of over 22,000MW of wind, solar and storage projects across 24 states, including almost 2.5GW of under construction and advanced-stage projects.

The $15bn BGTF I fund has also bought Standard Solar for $540m with a plan to invest an additional $160m ($140m in total net to Brookfield Renewable) to support the business.

Standard Solar has close to 500MW of operating and under construction contracted assets and a development pipeline of almost 2GW.

Both Scout and Standard Solar will continue to operate as independent businesses within the Brookfield Renewable US platform.

Connor Teskey, CEO of Brookfield Renewable, said: “We are thrilled to be putting more dollars to work in our US renewables business. We underwrote both transactions without the benefit of the Inflation Reduction Act so the additional incentives now available represent a significant boost to each business.”

The Inflation Reduction Act, which was passed in the US last month, is expected to help the US achieve carbon emissions goals.

Teskey said Brookfield Renewable’s development pipeline in the US is now close to 60GW and is well diversified across wind, utility-scale solar, distributed generation, and energy storage.

”Combined with our existing fleet we are well positioned for continued growth as owners and operators of one of the largest diversified clean power businesses in the country,” said Teskey.

Michael Rucker, CEO and founder of Scout Clean Energy, said: “Scout is pleased to be sponsored going forward by an industry-leading partner to help Scout continue to grow our rapidly expanding pipeline of wind, solar and battery storage projects across the US.

”With the recent passage of the Inflation Reduction Act, we believe now is the right time for Scout to move into our next phase of expansion with a highly respected and experienced partner, like Brookfield Renewable.”

Scott Wiater, president and CEO of Standard Solar, said: “Through this acquisition, which provides additional large-scale access to capital, Standard Solar is poised for massive growth, enabling us to contribute in an even more significant way to the clean energy transition.

”We’re looking forward to joining the Brookfield Renewable portfolio, one of the world’s largest renewable energy platforms. Our two companies share a mutual passion for renewables and company cultures that recognise and amplify excellence and equity - we are the ideal match.”

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