On Wednesday, Crossover Energy Partners, a renewables firm that develops bespoke energy transition and decarbonization plans for large energy users, announced that it has signed an exclusive relationship with private equity giant KKR.
Under terms of the agreement, Crossover Energy Partners, which is headquartered in in Scottsdale, Arizona, with office locations in San Francisco, Chicago, New York and Raleigh, will serve as the energy transition solutions partner for KKR’s Infrastructure team, assisting with the origination, development, financing, construction and long-term operation of clean energy projects. The relationship will focus on originating structured Power Purchase Agreements (PPAs), Tolling Agreements, Build-Transfer Agreements (BTAs), as well as offtake optimization, contract structuring, and the pursuit of new opportunities in emerging segments such as EV fleets and hydrogen.
“Through this relationship, our investors will get added value from distinctive asset sourcing, customized PPAs, technical expertise in storage and renewable energy, deep operational engagement, and active stakeholder management,” KKR Infrastructure Team Managing Director Benoit Allehaut said in a statement announcing the deal.
Crossover Energy’s client roster includes utility companies, municipalities, co-ops, community choice aggregations (CCAs), and large industrial customers. Its team has a combined track record of 10.5 GW of renewable energy and 11.7 GWh of energy storage products over the last three years. The firm handles all aspects of greenfield development for utility-scale solar and wind projects, including some of the largest behind-the-meter solar + storage projects in the world.
KKR has been an active investor in renewable energy for the last ten years, deploying more than $4.7 billion in renewable assets at a combined enterprise value exceeding $19.5 billion, with a power generation capacity of 12.5 GW. Over the past 12 months, KKR’s infrastructure team has made a number of investments behind this theme globally, including recent investments in Caruna, Finland’s largest electricity distribution company, NextEra Energy, the world’s largest generator of energy from the wind and sun, Virescent Infrastructure, a newly created platform to acquire renewable energy assets in India, and First Gen, one of the Philippines’ largest independent power producers.
KKR currently manages around $28 billion in infrastructure assets and has made over 40 infrastructure investments to date, across a range of sub-sectors and geographies.
