Dive Brief:
- Sempra Energy has completed the sale of its U.S. renewable energy business and non-utility natural gas storage assets, generating $2.5 billion in total cash proceeds.
- On Monday, Sempra completed the sale of its remaining ownership interests in operating and development-stage wind assets to American Electric Power for $584 million.
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Sempra announced last year a three-phase effort to "optimize" the company's business portfolio and divest some international and liquefied natural gas assets.
Dive Insight:
Proceeds from the sale will go to pay down debt and redeploy capital to support strategic growth in North America, Sempra officials said.
"We have a long and successful track record of actively managing our portfolio, including exiting businesses that are no longer consistent with our strategy," Sempra Energy President and COO Joseph Householder said in a statement.
The wind assets sold to AEP include approximately 724 MW of net operating capacity across several projects, including all of Sempra's wind projects in current development. Other projects in the sale include:
- Black Oak Getty Wind in Minnesota,
- Apple Blossom Wind in Michigan,
- Sempra Energy's interests in five jointly-owned projects with BP Wind Energy.
The wind asset sales follow the sale in February of Sempra's non-utility gas storage facilities to an affiliate of ArcLight Capital Partners for $328 million in cash.
And last December, Sempra sold its U.S. solar assets and battery storage development projects, as well as its ownership interest in one wind facility, to Consolidated Edison for approximately $1.6 billion.
Sempra also says it is "in the process of selling its equity interests in its South American businesses," including an 83.6% stake in Luz del Sur S.A.A. in Peru and a 100% stake in Chilquinta Energía S.A. in Chile.
