The United States needs more power as fast as possible, tariffs and partisan politicking be damned. Solar photovoltaics (PV) are going to play a major part in the country’s energy future, regardless of what the Energy Secretary seems to think, and doubters needn’t look any further than a half-a-billion dollar European investment into one of America’s largest independent power producers (IPPs).
AIP Management (AIP), an investor in energy and decarbonization infrastructure founded by Danish pension provider PKA, has agreed to invest in community-focused energy infrastructure company Silicon Ranch. Although the planned total investment has not been publicly disclosed by Silicon Ranch or AIP, the Wall Street Journal has reported it as a $500 million bet on the U.S. firm.
AIP asserts that its investment shows conviction in the resilience of U.S. clean energy and the strong fundamentals supporting large-scale renewables. This will mark AIP’s second investment in a clean energy platform, following a previous transaction in Europe.
“This investment builds on our strategy of partnering with high-quality infrastructure platforms. Silicon Ranch is a leading IPP with profound local expertise, an embedded presence in the communities it serves, and a fully integrated approach to delivering clean power at scale,” noted Kasper Hansen, CEO and managing partner of AIP. “Our investment supports its continued growth and reflects our confidence in businesses with strong fundamentals and the ability to drive the energy transition forward.”
Founded in 2011 and headquartered in Nashville, Tennessee, Silicon Ranch is a fully integrated IPP with an impressive track record of developing, constructing, owning, and operating utility-scale energy infrastructure projects across 15 states and Canada. The company is best known for its pioneering work in the Southeast as the first to deploy utility-scale solar in Tennessee, Georgia, Mississippi, Arkansas, and Kentucky.
Silicon Ranch also boasts America’s largest wholly-owned agrivoltaics portfolio under Regenerative Energy. Its holistic approach to project design, construction, and land stewardship incorporates regenerative ranching and other land stewardship practices to restore soil health, promote biodiversity, and improve water quality at its sites.
“Silicon Ranch is pleased to welcome AIP as our newest strategic partner and eager to add their rich experience in long-term infrastructure investment and deep understanding of our sector to our shareholder base. With the support of AIP and our other shareholders, Silicon Ranch is well-positioned to execute our growth strategy as we partner with our diverse set of customers to deliver necessary energy infrastructure, all while helping American communities become stronger, healthier, and more resilient,” said Reagan Farr, president and CEO of Silicon Ranch.
Silicon Ranch’s portfolio includes 3.6 gigawatts (GW) of operating capacity and another 3.7 GW in construction or under contract across the US. The IPP claims a mid-term development pipeline of more than 12 GW of quality assets and aims to reach more than 10 GW of operating capacity by the end of 2030.
AIP’s investment is subject to customary regulatory approvals.
