US Developer Longroad in $500 Million Equity Deal With MEAG

US renewable energy developer Longroad Energy Holdings, LLC (“Longroad”) has announced a $500 million equity investment by MEAG, acting as asset management arm for entities of Munich Re, alongside two of the company’s existing investors, the NZ Super Fund and Infratil, a listed entity managed by Morrison & Co.  The investment will support Longroad’s strategic shift from a primarily “develop to sell” business model to one that is more oriented towards ownership, and will accelerate the expansion of its current 1.5 GW portfolio of owned assets, to 8.5 GW of wind, solar, and storage projects over the next five years.

‘The infusion provides Longroad with the capital to rapidly transition to a strategy biased to asset ownership. It also will fuel our acquisition goals and continue to support our investments in adjacent sectors, as we did recently with Valta Energy in the DG space,” said Paul Gaynor, CEO of Longroad.

Positioned for Growth

High Value Pipeline
In addition to its 1.5 GW net ownership operating portfolio, Longroad’s track record includes 3.2 GW of developed and acquired projects. Longroad has a substantial development pipeline of ~15 GW of wind, solar and storage projects across 13 states, including in key growth markets such as Arizona, California, Hawaii, Maine, and Utah:

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• Arizona – Operating and development portfolio of nearly 4 GW of solar and storage
• California – Operating and development portfolio of over 3 GW of solar and storage
• Hawaii – Development pipeline of over 500 MW of solar and storage
• Maine – Development pipeline of over 1 GW of wind, solar and storage
• Utah – Operating 306 MW of wind assets, with a development pipeline of over 2 GW of wind, solar and storage

Procurement Strategy
In support of its pipeline development, Longroad has established a deep relationship with First Solar and has recently signed a multi-year contract with Powin Energy, affording favorable procurement status and supply chain benefits. Longroad is currently contracted with First Solar for nearly 4 GW of panel supply through 2026, as well as with Powin to procure up to 4.5 GWh of storage through 2025.

Founded in 2016, Longroad Energy Holdings, LLC is focused on wind, solar, and storage project development, operating assets, and services. It currently owns 1.5 GW of wind and solar projects across the United States and operates and manages a total of 3.5 GW of wind and solar projects on behalf of Longroad and third parties.  Upon this transaction closing, Longroad will be owned by the NZ Super Fund, Infratil Limited, MEAG, and Longroad Energy Partners, LLC.

MEAG manages the assets of Munich Re and ERGO. MEAG currently manages assets to the value of around € 330 billion, around € 60 billion of which in its business with institutional investors and private customers.

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MEAG invests in alternative assets in North America on behalf of Munich Re group and other non-US institutional investors.  MEAG’s most recent infrastructure investments in the U.S. comprise 400 MW of solar farms and battery storage in California in 2021, various regulated U.S. water assets in 2020, as well as New York’s Astoria Energy Partners and Long Beach Container Terminal in 2019.