EQT Transition Infrastructure Acquires Scale in Major Microgrid M&A Deal

Global investment firm EQT has taken its first step into the American market with its new Transition Infrastructure strategy by acquiring microgrid developer Scale Microgrids. Based in New Jersey, Scale Microgrids is a major player in the microgrid sector, boasting nearly 250 MW of microgrid and community solar projects either operational or in progress. Additionally, the company has around 2.5 GW of distributed and community energy projects in its pipeline.

Scale Microgrids, founded approximately five years ago with initial backing from private equity group Warburg Pincus, has evolved into a vertically integrated organization that handles the financing, design, construction, ownership, and operation of microgrids and distributed energy resource assets across North America. Their client base includes indoor farming in Pennsylvania, cold storage almond growers in California, and municipal projects in Connecticut. One notable recent project by Scale was the development of a microgrid for Gallaudet University in Washington D.C.

Although the financial specifics of the EQT acquisition were not disclosed, the move signifies EQT’s dedication to driving the global energy transition and supporting a decarbonized and climate-resilient future. EQT’s partner and head of Transition Infrastructure, Jan Vesely, expressed excitement over the growth opportunities that lie ahead for Scale Microgrids under EQT’s ownership.

EQT’s foray into the American market follows their recent strategic investment in German battery energy storage developer ju:niz Energy. With approximately 246 billion Euros (US$253B) in global assets, EQT’s acquisition of Scale Microgrids marks a significant milestone in their North American investment strategy.

Scale Microgrids CEO Ryan Goodman welcomed the acquisition as an exciting new chapter for the company, highlighting EQT’s experience, resources, and capital that will help Scale achieve its vision to power the world with distributed energy. Goodman expressed gratitude towards past shareholders, particularly Warburg Pincus, for their support in Scale’s journey to becoming a leading provider of next-generation power infrastructure.

Warburg Pincus, which led a $300 million line of equity commitment to Scale in December 2019, has been instrumental in Scale’s growth, enabling the company to advance its business plan and expand its project portfolio to nearly 3 GW in total projects either completed, under construction, or in the planning stage. Ryan Dalton, managing director at Warburg Pincus, commended Scale for its remarkable growth and reputation within the industry, emphasizing the company’s strong position in the evolving power infrastructure landscape.