Belgian TSO Enters US Market with energyRe Giga Buy-In

Business & Finance

March 6, 2024, by Adrijana Buljan

Elia, through its subsidiary WindGrid, has acquired a 35.1 per cent stake in the US company energyRe Giga, a subsidiary of energyRe, the co-developer of the 2.4 GW Leading Light Wind offshore wind project in New Jersey.

The transaction, which closed at the beginning of February, is worth USD 400 million (approx. EUR 368 million) and marks an entrance into the US market for the Belgian transmission system developer and operator.

In December 2023, when the companies reached a firm agreement on the stake purchase, energyRe said Elia would be offering its expertise and experience in the development, construction, operation and maintenance of offshore transmission infrastructure, HVDC technology, transmission planning, and congestion management to the partnership.

Elia Group says it is entering the US markets alongside an established partner with a strong pipeline of projects.

Among the projects Elia’s US partner has in its portfolio is the 2.4 GW Leading Light Wind, developed by energyRe Giga’s parent company energyRe and Invenergy. The proposed offshore wind farm is one of the two New Jersey Board of Public Utilities (BPU) selected in its third offshore wind solicitation in January this year.

The project, located over 40 miles (some 64 kilometres) off the coast, is scheduled to begin construction in 2028, with operations expected to begin in 2032. Once operational, the 2.4 GW Leading Light Wind will supply New Jersey with enough electricity to power more than one million homes.

As part of its buy-in, Elia Group will deploy the agreed USD 400 million over three years into energyRe Giga, of which USD 250 million (approx. EUR 230 million) have been drawn as part of the transaction closing. Elia’s equity stake will increase as the amount is deployed over time, reaching 35.1 per cent once the entire acquisition amount is fully deployed. Proceeds will be fully committed to fund project development in US electricity transmission and renewable energy generation, Elia says.