EQT Transition Infrastructure set to acquire Scale Microgrids
In December, EQT Transition Infrastructure announced its intentions to seek out businesses to scale “that help enable the transition across industries to clean energy and a more resource-efficient, circular economy.” Looks like New Jersey’s Scale Microgrids is one of its first targets.
EQT Transition Infrastructure has agreed to acquire Scale Microgrids, a vertically integrated developer, acquirer, owner, and operator of microgrids and distributed energy resources for commercial & industrial, EV fleet, data center, municipal, university, hospital, and agricultural customers, developers and communities, from Warburg Pincus and other existing shareholders.
“We are thrilled that Scale Microgrids will become EQT Transition Infrastructure’s first investment in North America,” stated Jan Vesely, Partner and Head of EQT Transition Infrastructure. “We see enormous potential to accelerate Scale’s growth and establish it as one of the market’s leading vertically integrated energy companies.”
Scale Microgrids’ scale
Scale Microgrids’ portfolio consists of roughly 250 MWs of operating and in-construction assets, with another 2.5 GWs of near-term pipeline.
Scale deploys a variety of technologies including solar, battery storage, natural gas generators, fuel cell and combined heat and power, and its portfolio represents one of the largest pure-play microgrid portfolios in the United States.
“Today marks the start of an exciting new chapter for our company,” stated Ryan Goodman, CEO of Scale Microgrids. “EQT brings a depth of experience, resources, and capital that will enable us to continue pursuing our vision to power the world with distributed energy. I’m incredibly proud of what our team has built, and believe this transaction will enable us to unlock even greater opportunities for the customers, employees, and communities we serve.”
Enter EQT Transition Infrastructure
EQT is a global investment organization with EUR $246 billion in total assets under management, divided into two business segments: Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia Pacific, and the Americas.
This Scale Microgrids transaction marks EQT’s first North American investment out of its recently launched Transition Infrastructure strategy. EQT’s inaugural investment was in ju:niz Energy, a battery energy storage system developer and operator.
Scale addresses several of today’s most pressing grid challenges, including rapid load growth from data centers and fleet electrification, power generation capacity constraints, and increased frequency of grid outages. Scale’s assets add resiliency to power systems, enable faster access to power relative to extended interconnection wait times, and provide cost savings and predictable power compared to the grid while advancing customers’ decarbonization and sustainability objectives.
EQT brings a long-term strategic focus, deep experience in investing across the renewables infrastructure sector, and significant resources, and will focus on making strategic investments, including incremental capital, in Scale’s commercial processes, software systems, and project execution capabilities.
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