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New Jersey power producer acquires private developer
1 July 2006
NRG Energy Inc, a competitive power producer based in New Jersey, has acquired privately held Padoma Wind Power LLC for an undisclosed sum. The acquisition is part of a growing trend towards consolidation in the US wind industry that experts expect to continue at least for the next two years. NRG, whose global port-folio of power plants totals about 25,000 MW, says its purchase was prompted by the desire to further diversify its fuel mix and have immediate access to the high-growth renewable energy marketplace. "With Padoma, NRG is well-positioned to meet the demand for renewable energy sources, while also reducing our own carbon intensity and providing financial upside opportunities through the expansion of our energy services offering," says CEO David Crane. Padoma has more than 40 wind farms totalling more than 1300 MW of installed capacity under its belt and a project pipeline that is expected to bring a further 1000 MW to market by 2015. "In spite of the finite resources we have had at our disposal to date, Padoma has achieved significant success in the US renewables industry over the past five years," says CEO Jan Paulin. "However, with the dramatic increase in growth opportunities in the renewable industry, successful wind development companies are those which leverage off the resources and capabilities of a strategic partner while retaining their nimble decision making capability." The transaction will be funded with cash on hand and is expected to close by the end of this month. Padoma will operate as a subsidiary of NRG.
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