Borrego, a developer, EPC and O&M provider for large-scale solar and energy storage projects, has entered into a definitive agreement to spin off and sell its development business, including its project pipeline of over 8.4 GW of solar and 6.4 GW/25 GWh of energy storage, to ECP, an energy transition-focused investor.
Upon the completion of the transaction, ECP will operate the development business as an independent company. The business will be headquartered in Lowell, Mass., and will be led by the current development team as they continue to execute on the long-term business strategy in partnership with ECP. Dan Berwick, currently president of the development business, will become CEO.
“Borrego’s development business owns a best-in-class track record and project pipeline. We are thrilled to be partnering with Dan and team to help continue the company’s tremendous growth and success,” says Andrew Gilbert, partner at ECP. “At ECP, we believe the opportunity set in sustainable infrastructure is expanding rapidly as the world continues to advance electrification as a means to decarbonize. We’re excited to join forces with Borrego’s development business to create ECP’s eleventh renewable platform and fourth standalone solar platform.”
Borrego will continue to invest in its engineering, procurement and construction (EPC) and operations and maintenance (O&M) business units. Borrego EPC is a national builder of utility-scale and community-scale solar and energy storage projects with more than 450 MW of solar projects and 200 MW of energy storage projects currently in design or construction. The team currently manages the performance of 1.4 GW and over 1,000 solar operating assets, the majority of which were built by other EPCs.
“We are seeing tremendous opportunities in Borrego’s EPC and O&M services. This sale ensures we can invest in our people and build the technology that will position them to capitalize on what will be a record-breaking decade for solar and storage deployment in the United States,” states Mike Hall, CEO of Borrego. “I am thankful for the incredible development team that I’ve had the pleasure of working with for the last 12 years. We are thrilled that we were able to find a partner with ECP’s industry experience, financial resources and reputation.”
J.P. Morgan Securities LLC acted as exclusive financial advisor to Borrego in connection with the transaction.