Nova Infrastructure has acquired UGE International, a US community solar and battery storage business.
Nova is buying approximately 70% of the common shares of TSX-listed UGE in a deal that has received securityholder and regulatory approval.
Chris Beall, co-founder and managing partner at Nova, said: “Community solar represents a very fast-growing segment of the US power generation market with strong regulatory tailwinds supporting UGE’s portfolio of long-lived assets.
“UGE provides customers with attractive electricity rates under long term contracts that provide strong downside protection for investors. We have identified value-add initiatives that will accelerate growth in the UGE portfolio and drive strong cash flow generation.”
UGE is a solar operator and developer of rooftop and ground mounted commercial, industrial and community solar energy solutions. Founded in 2010, UGE develops, builds, finances, owns and operates solar and battery storage projects in New York, New Jersey, Maine, California, Pennsylvania, Oregon, Texas, Illinois, Maryland, Virginia and Massachusetts.
The company has designed and developed more than 500MW of projects, it said, with a portfolio of more than 12 operating and 81 advanced backlog projects in 11 states.
Through its share acquisition, Nova has partnered with the management team of UGE with the goal of “building the leading community solar and battery storage platform in the US middle market”.
Allison Kingsley, co-founder and partner at Nova, added that Nova has “committed acquisition capital as well as growth capital to support the expansion of the UGE platform and installed MW”.
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