Canadian pension fund La Caisse has successfully acquired Australian renewables developer Edify Energy in a deal valued at approximately $1.1 billion. This acquisition marks a significant step for La Caisse, which aims to expand its presence in Australia’s growing clean energy sector. The firm, formerly known as CDPQ, plans to accelerate the deployment of Edify’s portfolio, which primarily consists of solar and storage projects located on the East Coast of Australia.
La Caisse has committed around $1 billion in equity to this acquisition, with approximately one-third allocated for the purchase of Edify itself and the remainder designated for funding two advanced solar and battery projects. The acquisition aligns with La Caisse’s strategy to establish a foothold in the Australian market, where it has made previous attempts to enter, including an unsuccessful bid for Tilt Renewables in 2021.
Emmanuel Jaclot, executive vice-president and head of infrastructure and sustainability at La Caisse, emphasized the importance of this acquisition: “We don’t [currently] have renewables in Australia, which is something I was trying to fix, because I think it’s a great market to develop renewables … we want to be part of that.” He further expressed hopes that the deal would “turbocharge the development of Edify.”
Australia’s ambitious climate targets, which aim for 82 percent of energy to come from renewable sources by 2030, necessitate an accelerated rollout of renewable energy and storage projects. The Albanese government’s target for 2035 includes a 62-70 percent reduction in carbon emissions from 2005 levels, with a goal of achieving 90 percent renewables in the electricity fuel mix within the next decade.
This deal is part of a broader trend of increasing investment in the renewable energy sector, which has attracted significant interest from international investors, including US private equity firms such as KKR and Carlyle Group. Edify, established in 2015 by former MLC executive John Cole, will now complement La Caisse’s existing investments in Australia, which include interests in the Port of Brisbane, the WestConnex road tunnel in Sydney, and the New South Wales high-voltage power grid owner Transgrid.
The two advanced solar-plus-storage projects located in Queensland will now proceed toward financial closure, expected within this year and the next. These projects, known as the Smoky Creek and Guthrie’s Gap project and the Ganymirra and Majors Creek project, are underpinned by contracts with major firms such as Rio Tinto and the federal government.
Under La Caisse’s ownership, Edify is expected to continue its successful operations, which include securing development approvals, locking in customer contracts, and sourcing competitive equipment. The acquisition alleviates the pressure of financing projects, allowing Edify to focus on its core competencies. Jaclot noted, “We’re trying to take one of these pain points out for the management. They’re going to have the capital backing them, so they’re going to have to do exactly what they’ve been doing in the past.”
A notable shift for Edify post-acquisition is the intention to retain ownership of most of its plants. This strategy aims to build a comprehensive portfolio of generation and storage assets, supported by long-term customer contracts. As Jaclot stated, “We’re not a short-term investor hoping to make a few bucks and run away – we are here for the long run.”
Despite potential hurdles in the rollout of renewable projects, including slow planning approvals and pushback from rural communities, Jaclot remains optimistic about the long-term direction of the market. “There’s a well-constructed plan to build out renewables across Australia, so that’s what we’re buying into,” he explained, emphasizing that the timeline for achieving these goals is not a primary concern.
For Edify, the financial strength provided by La Caisse is expected to enhance overall business efficiency, facilitating project sequencing and negotiation with equipment suppliers and offtakers. Cole commented, “There will be a lot of benefit for Edify knowing that it has that balance sheet strength coming from La Caisse to enable projects to be financed and delivered more quickly.”
This acquisition not only reflects the growing commitment to renewable energy in Australia but also underscores La Caisse’s strategy to expand its international footprint in sustainable investments.
