Clearway Energy on Monday announced a major strategic expansion into its core markets, signing a binding agreement to acquire a 613 MWac operational solar portfolio from Deriva Energy, LLC.
The expansive portfolio includes assets across eight states, with the highest capacity and value concentrated in the CAISO (California Independent System Operator) and PJM (PJM Interconnection) markets—regions where Clearway already possesses significant operating strength.
High-value, accretive Investment
The acquisition aligns with Clearway’s strategy of enhancing asset value through operational expertise and future development. The portfolio features a weighted average contract life of 10 years, offering Clearway opportunities for contract extensions and battery hybridization, a value-creation strategy the company has successfully implemented in the past.
Clearway’s total long-term corporate capital investment is expected to be approximately $210-$230 million, after factoring in closing adjustments and asset-level financings. This investment is projected to be immediately accretive, delivering an incremental five-year average annual asset Cash Available for Distribution (CAFD) of approximately $27 million beginning Jan. 1, 2027, with a 5-year annual CAFD yield over 12%.
Partnership and funding strategy
A portion of the deal involves a new partnership element. For 12 assets in the Western U.S. totaling 227 MWac, Clearway will enter a 50/50 cash equity joint venture with Fengate Asset Management, a firm with which Clearway already has an established investment relationship.
Clearway expects to fund the entire acquisition within its existing capital allocation framework, noting it has the flexibility to complete the deal without requiring incremental equity issuances beyond those already planned. The transaction is anticipated to close by the second quarter of 2026.
Driving future growth targets
Craig Cornelius, Clearway Energy, Inc.’s president and chief executive officer, highlighted the portfolio’s role in accelerating the company’s financial goals.
“This acquisition leverages our core strength in solar plant operations to generate significantly accretive returns… Further deepening our presence in the CAISO and PJM markets, the acquisition also gives us the opportunity to create upside value in the next decade by applying our proven playbook for battery hybridization and contract extensions,” Cornelius said.
