Novatus Energy and Southwest Generation announce merger
US-based independent power producers Novatus Energy and Southwest Generation have merged to create Onward Energy.
The new entity will own 43 wind, solar, and natural gas generating projects across 16 states, and will be "ideally situated to help customers address the US energy market's transition to lower carbon".
"Combining these companies positions us to be a leader in the energy transition," said John Foster, CEO of Southwest Generation, who will serve as Executive Chairman of the merged entity. "With an array of zero-carbon renewable resources and flexible natural gas generation capabilities, the new company will be able to offer a full range of energy solutions to customers seeking reliable ways to reduce their carbon footprint."
Steve Doyon, CEO of Novatus Energy, said the energy transition calls not only for flexible resources, but skilled and experienced teams to ensure clean and reliable power for customers across the US "and backed by long term capital, Onward is ideally positioned to respond to those needs".
Onward will continue to provide services under Novatus Energy's and Southwest Generation's existing power purchase agreements with their respective counterparties, and looks forward to continuing existing relationships with our local communities. The integration was completed without any significant workforce disruption.
Headquartered in New York City, Novatus Energy was a North American privately-held renewable energy platform that currently owns interests in a 1.9 GW portfolio of operational wind and solar projects in the US, consisting of 10 wind projects (1,397 MW) and a portfolio of 25 solar PV projects (543 MWac).
Southwest Generation was a Denver-based independent power producer whose 8 natural gas power plants generate 2.3 gigawatts of flexible generation capacity across the US.
Renewable growth may accelerate in 2021 as the new administration starts to execute on a platform that includes rejoining the Paris Climate Accord, investing $2 trillion in clean energy, and fully decarbonizing the power sector by 2035 in order to achieve a larger goal of net-zero carbon emissions by 2050, according to Deloitte research.
The potential for increasing renewable energy demand, electrification of the transportation and industrial sectors and oil and gas companies’ plans to increase participation in the electricity value chain, are accelerating energy industry convergence, Deloitte adds. "These trends may foster collaboration that gives rise to new business models and helps advance the energy transition," it states.