Ares takes an 80% stake in a 384 MW California solar-and-storage portfolio, giving the investment giant a much bigger seat at the table in the state’s clean-power buildout
California remains one of the leading solar energy-producing states in the U.S., although the nation has done a tremendous job in ensuring that all the states have a consistent clean energy supply for many years to come. The U.S. government deserves huge credit for the way that it has collaborated with private companies and made it easier for them to pursue and successfully execute projects that provide electricity for the general population while also helping the country meet its clean energy targets. On that note, Ares takes an 80% stake in a 384 MW California solar-and-storage portfolio, giving the investment giant a much bigger seat at the table in the state’s clean-power buildout.
Ares achieves a strategic milestone related to the clean energy industry
Ares Management Corporation was founded in 1997 and is headquartered in Los Angeles, California, where it has executed a massive part of its initiatives. According to reports, the entity manages an estimated $671 billion in assets with around 4,400 employees globally as of mid-2026.
As of now, Ares focuses on liquid and illiquid credit strategies, including direct lending, high-yield bonds, and bank loans. It invests in corporate private equity, special opportunities, and under-capitalized businesses. The more projects that Ares becomes involved in, the more it diversifies its portfolio.
Ares takes an 80% stake in a 384 MW California solar-and-storage portfolio
In the past, solar energy facilities were seen as a high risk to be involved in, considering that there is no way to guarantee the consistent availability of sunlight and thus the consistent generation of energy. However, technology and scientific resources have allowed developers to combine solar energy generation and storage facilities, which means solar energy facilities are now highly rewarding, as they have increased chances of maintaining energy availability.
According to a press release from Ares Management Corporation, the company announced that an Ares Equity fund has acquired an 80% stake in a 384 MW solar and storage portfolio from EDP Renewables, S.A. (EDPR). EDP Renewables (EDPR) is a global leader in the renewable energy sector and the world’s fourth-largest renewable energy producer, supported by a robust development pipeline, high-quality assets, and market-leading operational capabilities.
In the past decades, EDPR has experienced strong and consistent growth, which means it is now present across four major regions: Europe, North America, South America, and Asia-Pacific. The company’s diversified portfolio includes onshore wind, utility-scale and distributed solar, offshore wind through Ocean Winds (a 50/50 joint venture), and complementary renewable technologies such as hybridization and energy storage. In the latest acquisition agreement, the total estimated enterprise value for 100% of the portfolio at the start of operations amounts to roughly $0.8 billion.
Gaining a deeper insight into the Ares and EDPR 80% acquisition
The total portfolio consists of 200 MW of solar and 184 MW of battery energy storage in California. The solar capacity is contracted through a 20-year Power Purchase Agreement, and the storage capacity has a 20-year Capacity Tolling Agreement.
The latest transaction builds on Ares Infrastructure Equity’s previously announced investment in a 1,632 MW diversified energy portfolio from EDPR in 2025. That portfolio includes 1,030 MW of solar, 402 MW of wind, and 200 MW of storage capacity across four U.S. power markets.
Looking ahead: Is Ares Management Corporation set to be involved in more deals?
For Ares, the acquisition marks yet another huge milestone reiterating the company’s dominance as a strategic investor in the United States. Josh Bellet, Managing Director at Ares Infrastructure Equity, stated the following:
“We are pleased to expand our relationship with EDPR through our investment in this portfolio, which combines utility-scale solar generation and battery storage supported by long-term contractual arrangements.”
The clean energy industry is highly profitable at the moment, which explains the various companies that are seeking to capitalize before the sector evolves once again. Ares Management Corporation is a leading global alternative investment manager that has contributed to a wide range of projects in different fields.
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