ArcLight Energy Partners Fund VII subsidiary Parkway Generation has completed its previously announced acquisition of a 4.8 GW power generating portfolio from Public Service Enterprise Group for $1.37 billion.
The acquisition was financed with $1.14 billion of senior secured credit facilities in the institutional term loan market. After the acquisition, ArcLight and its affiliates will manage ownership interests in power generation that represent electric capacity of more than 25 GW.
Parkway Generation now has a portfolio of nine natural gas-fired power generation facilities, which provide critical capacity, energy and ancillary service resources to New Jersey and Maryland. The output from these facilities will enable the integration of intermittent renewable resources in the electricity markets of the two states over the coming decades.
The portfolio will support energy transition via battery storage projects and by providing interconnection sites for offshore wind projects, which are still under development.
“Parkway Generation complements the ongoing energy transition by providing critical infrastructure to a densely populated load center, while providing reliable and fast-ramping power to the PJM market, and will serve as a key platform for the development of additional renewable energy resources,” ArcLight Capital Partners’ Managing Partner and Founder Dan Revers said. “ArcLight remains highly focused on investments supporting the ongoing energy transition, including through its substantial experience in renewable energy, battery storage, and critical natural gas infrastructure."
PSEG is selling off or retiring its fossil-fired portfolio, including coal-fired power, to focus on nuclear and renewable projects.
