This marks the Vancouver-based company’s first sale of utility-scale projects in its U.S. pipeline. Total financial considerations were not wholly disclosed, but it includes an up-front payment of $2.6 million, which covers reimbursement for development costs to date.
"We are delighted to announce the sale of our Bouse and Parker solar and storage projects to ENGIE . . . It successfully demonstrates our development approach as well as our strategy in working with experienced utility partners to deliver significant returns for our shareholders,” Steve Dalton, Revolve’s CEO, said in a statement.
Dalton expects the transaction to provide Revolve with resources to advance its remaining development portfolio. It will also evaluate opportunities to add more greenfield projects to its active development portfolio in the near-term.
"We look forward to continuing to supporting the team at ENGIE in developing the projects to a construction-ready stage."
About Revolve and ENGIE IR
Formed in 2012, Revolve (REVV-X) develops utility-scale wind, solar and battery storage projects in the U.S. and Mexico with a portfolio of approximately 2,450 MW under development. It also has a second division, Revolve Renewable Business Solutions, which installs and operates distributed generation assets below 20 MW.
Revolve Renewable currently has an operating portfolio of 2.85 MW with an additional 6.2 MW under construction.
Revolve has a goal of 5,000 MW of utility-scale projects under development in the U.S. and Mexico.
ENGIE IR, the subsidiary of ENGIE North America Inc., serves as the holding company for ENGIE's North American solar development pipeline. In 2020, the ENGIE (ENGQF) family of companies reported revenues of over $91.6 billion and EBITDA of $15.1 billion.
Revolve’s solar and storage projects
The 1,000 MW Bouse solar and battery storage project is located on approximately 6,155 acres managed by the Bureau of Land Management in La Paz County, east of Quartzsite, Ariz. It is listed as an early-stage development project on the company's website.
The project has the capacity to provide electricity to approximately 1.2 million homes. Revolve began greenfield development in early 2021.
In a May release, Dalton stated Bouse is “one of the largest solar and storage projects in Arizona and is expected to play a significant role in meeting the rapidly growing renewable energy needs across both Arizona and California."
The 250 MW Parker solar and storage project is located on approximately 1,530 acres of land. It is also managed by the bureau in La Paz County, with the capacity to provide electricity to approximately 300,000 homes.
Revolve commenced greenfield development in mid-2021. According to a November release, the project will be construction ready by 2024.
The remaining financial consideration is dependent on three development milestones: the completion of more interconnection studies later in 2023, ENGIE issuing a notice to proceed to a contractor, and on the commissioning date, meaning the projects are synchronized to the grid and capable of delivering their installed capacity.
As part of the transaction, ENGIE acquired 100 per cent of the shares in Revolve Renewable AZ LLC and Revolve Parker Solar LLC. It will also be responsible for further project development.
ENGIE also has the option to sell the projects back to Revolve, for a limited period of time, following receipt of the results of the next interconnection study due for each project. If that happens, Revolve would also refund ENGIE for the development expenses.
Revolve’s other U.S. utility-scale, in-development renewable projects are located in Utah, Colorado and New Mexico. It also has four in-development wind projects in Mexico.