Partners Group has announced its agreement to acquire a portfolio of California natural gas-fired power plants for $2.2 billion to enhance operational efficiency and support the state's energy transition.

Target Overview

Partners Group, a prominent private equity firm, has agreed to acquire a portfolio of natural gas-fired power plants located in California from Middle River Power and Avenue Capital Group for a total consideration of $2.2 billion. The portfolio includes significant assets such as the 1,200-megawatt (MW) Inland Empire Energy Center, the 965-MW La Paloma Generating Station, and the 615-MW El Segundo Energy Center. Collectively, these facilities play a vital role in supplying stable electricity to California’s grid, particularly during periods of peak demand.

Industry Overview

The energy sector in California is characterized by a diverse mix of energy sources, including renewable energy, natural gas, and nuclear power. Given the state's ambitious renewable energy targets and commitment to reducing greenhouse gas emissions, the role of natural gas-fired power plants remains crucial. They provide a reliable backup to intermittent renewable sources, ensuring grid stability as the state transitions towards a cleaner energy landscape.

California has been at the forefront of energy innovation, with a focus on integrating more renewable sources such as wind and solar into its energy mix. Despite the increasing share of renewables, natural gas