Ares Acquired Stake in California Solar Storage Assets
The firm secured an 80% interest in 384 MW of renewable capacity, backed by long-term operating contracts.
Updated on Sept. 23, 2026 in Energy
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Ares has acquired an 80% stake in a California-based portfolio comprising 200 MW of solar capacity and 184 MW of battery energy storage. This completed transaction involves assets valued at $800 million at the start of operations.
Why it matters
The investment provides capital for infrastructure projects that offer investors access to durable cash flows. By securing these specific assets, the firm continues a strategy of targeting utility-scale renewables with stable, long-term revenue visibility.
The 384 MW portfolio is split between 200 MW of solar generation and 184 MW of battery storage, supported by 20-year Power Purchase and Capacity Tolling Agreements. These contract structures guarantee revenue over two decades, contrasting with shorter-term merchant power market exposure.
The players
Ares
A global alternative asset manager with a significant portfolio in infrastructure and renewable energy assets.
The details
The transaction was executed through an Ares Infrastructure Equity fund to acquire majority control of the assets. A Power Purchase Agreement is a long-term contract where a utility or corporate buyer agrees to purchase electricity at a fixed rate, while a Capacity Tolling Agreement allows a counterparty to pay for the availability of storage capacity regardless of exact usage patterns. This combination of solar and battery storage allows the facility to manage intermittent renewable supply by shifting energy delivery to high-demand periods.
Timeline
Ares acquired a 49% stake in a 1,632 MW portfolio from EDPR in 2025.
The current acquisition was announced on September 23, 2026.
The Tech Race
This acquisition follows the firm's 2025 purchase of a 49% stake in a larger 1,632 MW portfolio from EDPR. The move demonstrates an intensified shift toward majority ownership stakes in integrated solar-plus-storage assets within the California grid.
The acquisition secures long-term revenue through 20-year contracts, ensuring these assets remain active in California's power supply for the next two decades. This stability supports the grid's transition to renewable sources without immediate changes for retail energy consumers.
The takeaway
The deal underscores the trend of private equity firms locking in multi-decade cash flows through renewable energy storage assets. Investors should monitor future portfolio performance metrics as these contracted assets begin operations in the California market.
Further reading
For more on the development of regional power infrastructure, visit Energy.
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Do you believe large-scale private investment in renewable energy makes the national power grid more reliable?
