Brookfield has agreed to acquire Aypa Power from funds managed by Blackstone Energy Transition Partners in a transaction valued at approximately $7 billion on an enterprise-value basis. The deal assigns Aypa an equity value of approximately $3 billion.
The acquisition gives Brookfield a scaled entry into the North American battery energy storage market. Aypa is described as the continent’s largest standalone battery storage developer, with projects across the United States and Canada.
Brookfield will acquire Aypa’s operating, under-construction and contracted projects, along with its development platform and approximately 200 employees. The investment firm plans to support the company’s growth using its operating, development, procurement, commercial and capital markets capabilities.
Aypa has approximately 6.5 gigawatts of operating, under-construction and contracted battery storage capacity. Its development pipeline exceeds 20 gigawatts, providing opportunities to build additional projects as electricity demand and grid requirements increase.
Battery energy storage systems store electricity during periods of lower demand or excess generation and return it to the grid when power is needed. The systems can improve reliability, balance renewable energy production and provide flexible capacity in areas where transmission infrastructure is constrained.
Approximately 95% of Aypa’s operating and under-construction portfolio is covered by long-term agreements with investment-grade customers. Those contracts have an average remaining term of 17 years, providing the company with significant visibility into future cash flow.
Aypa’s development platform includes capabilities in project siting, transmission analysis, procurement and contracting. The company serves utilities, corporations and other large electricity customers seeking reliable and flexible power infrastructure.
Brookfield plans to accelerate development of Aypa’s pipeline by providing access to capital, global suppliers and commercial relationships. The acquisition also strengthens Brookfield’s ability to combine battery storage with renewable generation and other energy technologies.
Brookfield is pursuing the transaction through the second vintage of its flagship global transition strategy. Institutional partners participating alongside the strategy include Brookfield Renewable Partners.
Aypa currently has 35 projects operating or under construction. Since launching its first project in 2018, the company has expanded into a large independent power producer focused on utility-scale storage and hybrid renewable energy projects.
Blackstone invested in Aypa based on its expectation that battery storage would become increasingly important for grid reliability and rising electricity consumption. Demand is being supported by artificial intelligence infrastructure, data centers, electrification and the addition of intermittent renewable power.
Completion of the transaction remains subject to customary regulatory approvals. The announcement did not provide an expected closing date.
Cantor Fitzgerald served as lead financial adviser to Aypa and Blackstone, with Bank of America also serving as financial adviser. Kirkland & Ellis provided legal counsel to Aypa and Blackstone, while White & Case advised Brookfield.
KEY QUOTES:
“We are excited to partner with Aypa to deliver on the company’s scale growth pipeline. Battery storage is increasingly critical to the reliability and resilience of today’s energy systems, and bringing together this leading platform with Brookfield’s broad capabilities across technologies and geographies further strengthens our ability to deliver integrated energy solutions to the world’s largest buyers of power.”
Jehangir Vevaina, Chief Investment Officer in Brookfield’s Energy Group
“This is an extraordinary achievement for the team that built Aypa. Over the past six years, with Blackstone’s partnership, we grew Aypa into the largest and most valuable storage-focused independent power producer in North America.”
“Together, we helped establish battery storage as critical infrastructure, essential to a more reliable and resilient grid. I look forward to seeing Aypa flourish further under Brookfield’s ownership.”
Moe Hajabed, Founder and CEO of Aypa Power
“We invested in Aypa based on our conviction that battery storage would become increasingly critical to supporting grid reliability and meeting growing electricity demand from AI and other use cases.”
“Since then, the company has established itself as the leading battery storage platform in North America, supported by a premier development pipeline and strong customer relationships. We are proud to have partnered with Aypa and its exceptional management team, and look forward to its next phase of growth with Brookfield.”
Bilal Khan, Senior Managing Director, and Mark Zhu, Managing Director at Blackstone
