Partners Group has plans to acquire a portfolio of 11 natural gas power plants in California from the Avenue Golden Continuation Fund, as well as Middle River Power, the company that operates the assets. The transaction values the portfolio and Middle River at an enterprise value of $2.2 billion.
The portfolio includes nine simple-cycle peaking facilities and two combined-cycle, gas-turbine plants with a combined capacity of 1.9 gigawatts. Middle River has pioneered a strategy that develops on-site battery energy storage systems (BESS) at its existing gas-fired power plants to create Hybrid Energy Centers. The BESS stored energy that can be discharged when needed, reducing the overall carbon footprint, while enhancing reliability.
The creation of these Hybrid Energy Centers has enabled the Portfolio and Middle River to unlock longer-term contracts of up to 15 years with utilities. Middle River also provides asset-management services to third-party owners of power plant
