AGL to acquire Australia's Firm Power and Terrain Solar

The deal is worth $250m.

AGL Energy Limited  has entered into a binding agreement for the full acquisition of the shares and units in Firm Power and Terrain Solar, which have a combined development pipeline of 8.1 gigawatts (GW) in Australia, for $250m.

“We believe this high-quality development pipeline presents strong optionality for AGL, focusing on firming capacity which will be required to firm new renewable generation for our customer base and portfolio as thermal baseload generation exits the NEM [national electricity market],” AGL Managing Director and CEO Damien Nick said.

Firm Power is a battery energy storage system developer with 21 projects in development, and Terrain Solar is a solar project developer with 6 projects in development.

The $250m acquisition is expected to be funded from cash on AGL’s balance sheet. It still is subject to customary conditions precedent, with completion anticipated in 2024.