POWER AND UTILITIES MARKET SNAPSHOT - Quarter Ending December 31, 2021 - Houlihan Lokey
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POWER AND UTILITIES MARKET SNAPSHOT Quarter Ending December 31, 2021
Introduction
Dear Clients and Friends,
Houlihan Lokey is pleased to present its Power and Utilities Market Snapshot for the quarter
ending December 31, 2021.
We have included relevant news, recent M&A transaction announcements, and other industry
insights to help you stay ahead in this evolving industry. We hope you find this quarterly
update to be informative and that it serves as a valuable resource to you in staying abreast of
the market. If there is additional content you would find useful for future updates, please don’t
hesitate to call or email us with your suggestions. We look forward to staying in touch with you.
Regards,
Houlihan Lokey’s Power & Utilities Group
Power & Utilities Group Contacts
Matthew Mazzucchi Mike Giffin Xander B. Hector Geoffrey G. Wilson Blair Richardson Dan Beaulne
Managing Director Managing Director Managing Director Managing Director Managing Director Director
MMazzucchi@HL.com MGiffin@HL.com XHector@HL.com Geoff.Wilson@HL.com BWRichardson@HL.com DBeaulne@HL.com
214.220.8494 214.220.8485 612.215.2251 646.259.7560 415.273.3605 214.665.8631
Dan O’Donnell Robert Zarnoch Matthew Bertolatus Vamsi Manda Spencer Anderson
Director Director Senior Vice President Senior Vice President Vice President
DODonnell@HL.com RZarnoch@HL.com MBertolatus@HL.com VManda@HL.com SJAnderson@HL.com
214.665.8626 214.665.8672 612.215.2257 214.665.8665 612.215.2885
Our Power & Utilities Group Service Offerings:
• Mergers and Acquisitions • Corporate Valuation Advisory Services
• Capital Markets • Transaction Advisory Services
• Board Advisory Services • Dispute Resolution Services
• Financial Restructuring • Transaction Opinions
• Portfolio Valuation and Fund Opinions
2Houlihan Lokey is the trusted advisor to more top decision-
makers than any other independent global investment bank.
Corporate Finance Financial Restructuring Financial and Valuation Advisory
No. 1 U.S. M&A Advisor No. 1 Global Restructuring Advisor No. 1 Global M&A Fairness Opinion
Advisor Over the Past 20 Years
Top 5 Global M&A Advisor 1,400+ Transactions Completed
Valued at More Than $3.0 Trillion 1,000+ Annual Valuation
Leading Capital Markets Advisor Collectively Engagements
Selected Transactions
Transaction Pending
Project Ceres Project Odyssey
has completed the sale of a 100%
interest in the 600 MW Altura
has confirmed a Chapter 11 Plan of owns a platform of landfill gas-to- Cogeneration facility and a 50%
Reorganization power facilities currently pursuing interest in the 550 MW Cedar has completed the sale of its 50%
has confirmed a prepackaged strategic alternatives Bayou 4 facility, both of which are indirect interest in a 1,740 MW
Chapter 11 Plan of Reorganization natural gas-fired CCGT power portfolio of two combined cycle
plants located in Texas, to natural gas-fired power plants to
Creditor Advisor Company Advisor Sellside Advisor Sellside Advisor Sellside Advisor
has sold its wind farms in Inner
has completed the sale of the 320 has completed its business Mongolia, China with an aggregate
MW development stage Boswell combination with capacity of c. 150MW to
Coso Geothermal Power Springs Wind Farm to
Holdings has completed the sale of an
undivided interest in Antelope
has been acquired by Valley Station Unit 2 to a leading
alternative asset manager
Sellside Advisor Sellside Advisor Financial Advisor Sellside Advisor Sellside Advisor
Tombstones included herein represent transactions closed from 2015 forward. 3United States and Canada Update
Western Electricity Coordinating Council SERC Reliability Corp.
• Nov. 2: A hearing examiner for the New • Oct. 26: American Electric Power Co. Inc. has agreed to sell its Kentucky
Mexico Public Regulation Commission operations to Algonquin Power & Utilities Corp.’s Liberty Utilities Co. subsidiary in
recommended against a proposed $4.3 a deal with a $2.85 billion enterprise value.
billion merger between Avangrid Inc. and
PNM Resources Inc.
Midcontinent Independent System Operator
• Dec. 20: The Arizona Corporation
Commission approved a state transportation • Dec. 10: The Midcontinent ISO’s board of directors approved 335 transmission
electrification plan during its monthly meeting. projects costing $3 billion as a part of the 2021 MISO transmission expansion.
WECC WECC MRO MRO
BC AB SaskPower Manitoba NPCC NPCC
Hydro Ontario Quebec
NPCC
MISO
WECC Maritimes
Texas Reliability Entity NWPP-US (MRO)
NPCC
New England
• Dec. 30: The
Electric Reliability WECC PJM (RF) NPCC New York
Council of Texas RMRG
SPP
announced its WECC SERC PJM Interconnection
completion of on- WECC SERC
CA/MX North
site inspections of SRSG East • Nov. 7: FirstEnergy Corp. agreed
mandatory SERC to sell a 19.9% stake in its three
winterization efforts Texas RE Southeast regulated transmission businesses
on the electric ERCOT to Brookfield Super-Core
FRCC
generation fleet Infrastructure Partners LP for $2.4
and transmission billion and issue $1 billion of
companies serving common stock to Blackstone
ERCOT. Infrastructure Partners LP.
Overall United States and Canada Market
• Oct. 1: Sempra completed the sale of a 20% equity stake in its subsidiary, Sempra Infrastructure Partners, to KKR & Co. Inc. affiliate
KKR Pinnacle Investor LP for $3.37 billion.
• Oct. 15: The Federal Energy Regulatory Commission approved AES Clean Energy Development LLC's acquisition of a 612 MW
operational wind portfolio from funds managed or advised by The Carlyle Group Inc.
• Oct. 25: Clearway Energy, Inc., agreed to sell its Thermal Business to KKR for total consideration of $1.9 billion.
• Nov. 2: Waukesha, Wisconsin-headquartered energy technology company Generac Holdings Inc. agreed to acquire Toronto-
headquartered smart home solutions provider ecobee Inc. in a deal valued up to $770 million.
• Nov. 6: U.S. President Joe Biden signed the $1.2 trillion bipartisan infrastructure bill into law.
• Nov. 8: Independent power producer Competitive Power Ventures Inc. completed the acquisition of two planned solar photovoltaic
projects in Illinois and Kentucky from the U.S. subsidiary of U.K.-headquartered Belltown Power Ltd. for an undisclosed amount.
• Nov. 30: Koch Engineered Solutions LLC purchased DEPCOM Power Inc., an Arizona-based company that builds large-scale solar
power plants with a portfolio of roughly 5,000 MW capacity.
• Nov. 30: Ontario Teachers’ Pension Plan Board has agreed to acquire a 50% stake in a 2,520 MW portfolio of contracted renewable
energy projects from NextEra Energy Resources, LLC, for $849 million.
• Dec. 3: Energy Transfer LP completed its all-equity acquisition of Enable Midstream Partners worth approximately $7.2 billion.
• Dec. 17: ArcLight Capital Partners LLC launched its $400 million Infinigen Renewables platform, focused on developing and operating
renewable energy projects in North America, Central America, and the Caribbean.
• Dec. 29: Funds managed by affiliates of Apollo Global Management Inc. announced the first close of an $816 million convertible equity
financing transaction with NextEra Energy Partners LP in a roughly 2.5 GW renewable energy portfolio.
Sources: SNL, S&P Capital IQ, Bloomberg, North American Electric Reliability Corp., company websites, and press releases. 4International Update
Europe
X
• Oct. 20: Ørsted A/S agreed to sell a 50% stake in its planned 900 MW Borkum Riffgrund 3 offshore wind farm in Germany to Glennmont
Partners for approximately €1.2 billion.
• Nov. 11: Engie S.A. and Crédit Agricole Assurances S.A. reached an agreement to acquire a 97.33% stake in Spanish renewable power
producer Eolia Renovables de Inversiones SCR S.A. from Alberta Investment Management Corp. The financial details of the transaction
were not disclosed, but a recent report by Bloomberg News said the deal could be worth more than €2 billion.
• Dec. 14: Falck Renewables S.p.A. and BlueFloat Energy LLC have established an ad hoc company called Minervia Energia, which will
develop a floating offshore wind farm in Catanzaro, Italy.
• Dec. 14: Swedish battery-maker Northvolt AB and Lisbon, Portugal-based Galp Energia SGPS S.A. agreed to build what is touted as
Europe’s largest lithium conversion plant in Portugal, with the investment estimated at €700 million.
• Dec. 15: The Spanish government approved a €6.9 billion energy plan to invest in renewables, green hydrogen, and energy storage
over the next two years, Reuters reported, citing statements from government officials.
• Dec. 23: Italy’s A2A S.p.A. struck a partnership with Volta Green Energy SRL that includes the planned acquisition of wind and solar
projects totaling about 800 MW. Financial details of the deal were not disclosed.
• Dec. 23: Engie S.A. completed the sale of an 11.5% stake in France’s largest gas transmission network, GRTgaz S.A., to Société
d’Infrastructures Gazières for €1.1 billion, the French utility announced on Dec. 22.
• Dec. 23: Opdenergy Holding S.A. signed a new power purchase agreement with an unnamed European investment-grade utility,
covering 750 MW from 17 solar projects in Spain.
Latin America
• Nov. 11: Sonnedix Power
Holdings Ltd. agreed to sell
its Puerto Rico solar
operations (totaling 73.2
MW) to ArcLight Capital
Partners LLC’s Infinigen
Renewables platform.
Asia-Pacific
• Oct. 11: A subsidiary of Japanese conglomerate Eneos Holdings Inc. agreed to acquire Japan Renewable Energy Co. Ltd. for
approximately $1.8 billion.
• Oct. 17: OMERS Infrastructure has agreed to acquire a 49% interest in Fotowatio Renewable Ventures’ Australian renewables unit.
Financials were not disclosed.
• Dec. 6: Engie S.A. and Masdar signed a strategic alliance agreement to explore the co-development of a green hydrogen hub in the
United Arab Emirates. The two companies are looking to develop projects with a capacity of at least 2 GW in the region by 2030, with a
total investment of $5 billion.
• Dec. 7: Saudi Arabian energy giant Saudi Arabian Oil Co. plans to divest 49% of its stake in its natural gas pipeline network to a
consortium led by BlackRock Inc. and Hassana Investment Co. for $15.5 billion.
• Dec. 23: A consortium of Electricité de France S.A., Korea Electric Power Corp. and Japan’s Kyushu Electric Power Co. Inc. is among
the investors of a $3.6 billion project to decarbonize Abu Dhabi National Oil Co.’s offshore production operations.
Sources: SNL, S&P Capital IQ, Bloomberg, North American Electric Reliability Corp., company websites, and press releases. 5U.S. Generation
U.S. Generation Fuel Mix (%)
Other Other Renewable Wind Solar Conventional Hydroelectric Nuclear Natural Gas Coal
19.0% 19.5% 18.8% 22.5%
41.7% 40.9% 41.2% 38.3%
18.9% 2.3% 18.2% 2.9% 19.6% 18.6%
2.3% 2.9%
6.0% 5.6% 7.2% 6.2%
1.8% 1.8% 1.7% 1.7%
9.2% 10.1% 1.1% 8.1% 8.7%
1.2% 1.0% 1.0%
October 2020 October 2021 2020 YTD 2021 YTD
U.S. Generation by Fuel Type (Million MWh)
October 2021 YoY Change YoY % Change 2021 YTD YoY Change YoY % Change
Coal 62.6 2.8 4.7% 781.7 124.3 30.0%
Natural Gas 131.4 (0.1) 0.1% 1,326.5 (54.2) (5.8%)
Nuclear 58.4 (1.0) (1.6%) 646.1 (11.7) (2.5%)
Other 3.5 (0.3) 9.8% 36.1 (0.1) (0.3%)
Conventional Hydroelectric 18.1 (0.7) (3.7%) 214.2 (28.6) (11.8%)
Solar 9.2 2.1 29.8% 100.2 21.9 27.9%
Wind 32.4 3.6 12.5% 303.0 30.2 11.1%
Other Renewable 5.8 0.2 3.8% 59.9 1.2 2.1%
Hydroelectric Pumped Storage (0.4) 0.0 (0.9%) (4.3) 0.3 6.5%
Total Generation 321.1 6.8 2.2% 3,463.4 101.9 3.0%
Total Renewable Generation 65.6 5.2 8.6% 677.3 24.6 3.8%
Total Nonrenewable
255.4 1.6 0.6% 2,786.1 77.3 2.8%
Generation
Sources: U.S. Energy Information Administration, SNL Energy.
Notes: As of December 29, 2021. “Other renewable” includes wood, black liquor, other wood waste, biogenic municipal solid waste, landfill gas, sludge waste,
agriculture byproducts, other biomass, geothermal, and wind. “Other” includes petroleum liquids, petroleum coke, blast furnace gas, manufactured and waste
gases derived from fossil fuels, nonbiogenic municipal waste, batteries, hydrogen, purchased steam, sulfur, tire-derived fuel, and other miscellaneous energy
sources. 6About Houlihan Lokey
Houlihan Lokey (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital
markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments
worldwide with offices in the United States, Europe, the Middle East, and the Asia-Pacific region. Independent
advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory
services. Houlihan Lokey is the No. 1 M&A advisor for the past six consecutive years in the U.S., the No. 1
global restructuring advisor for the past seven consecutive years, and the No. 1 global M&A fairness opinion
advisor over the past 20 years, all based on number of transactions and according to data provided by Refinitiv.
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