EIG, a leading institutional investor in the global energy and infrastructure sectors, and Saudi-listed Acwa have agreed to establish Plenum Power, with $4 billion initial capital, to invest in US power infrastructure.
The partnership combines Acwa's global capabilities in developing, financing, constructing, and operating large-scale infrastructure across conventional and renewable power generation and energy storage, with a track record of delivering projects at scale, driving competitive energy costs and maintaining strong operational performance, alongside EIG's experience in sourcing, establishing, financing and scaling energy infrastructure platforms.
Plenum Power is being launched at a time when rising electricity demand, driven by electrification and the rapid expansion of AI data centres, is expected to create significant investment opportunities across the US power sector.
Jointly pursue acquisitions
EIG and Acwa believe that meeting this demand affordably and reliably will require new generation capacity, energy storage and investment in existing infrastructure, and that these conditions create opportunities to jointly pursue acquisitions, develop new capacity and support the next phase of growth in US power infrastructure.
R Blair Thomas, Chief Executive Officer of EIG, said: “The US power industry is at an inflection point, with demand accelerating as AI, data centers and electrification reshape the market. At the same time, recent dislocation in renewable energy development caused by regulatory changes, supply chain inflation and interest rates in the US creates an attractive entry point for a new entrant at scale in our view. We believe those dynamics will drive consolidation across the industry and that Acwa's global operating capabilities, combined with EIG's investment, financing and platform-building experience, position Plenum Power well in this evolving market environment. We’re also fortunate to have a deep relationship with Acwa and KSA to build upon as we pursue this new initiative.”
Dr Samir J Serhan, Chief Executive Officer of Acwa, said: “The US represents a significant opportunity for Acwa to bring its global expertise in developing, financing, and operating large-scale power infrastructure to one of the world’s most dynamic energy markets. As electricity demand accelerates, meeting that growth is expected to require substantial investment, reliable generation capacity, and the ability to deliver projects efficiently and at scale.
Strong foundation
“Our partnership with EIG combines complementary strengths in infrastructure investment, development, and operations, creating a strong foundation to pursue opportunities across conventional and renewable power generation and energy storage. This marks an important step in expanding Acwa’s international footprint and supporting the development of resilient, competitive energy infrastructure in the US.”
Andrew Ellenbogen, President of EIG, said: “Our strategic investments business is built around high-conviction theses in sectors undergoing structural change. Plenum Power builds on a platform-creation playbook EIG has applied across prior strategic initiatives in oil & gas, LNG and battery storage, combining EIG’s investment origination, capital formation and M&A capabilities with Acwa’s global development and operating expertise. Together, we seek to create a scaled US power platform that can grow through acquisitions and the development of new capacity.”
Dr Serhan added: “Our ambition is to identify investment opportunities that have the potential to become high-performing infrastructure assets and create long-term value. Acwa brings decades of experience in managing complex projects across their entire lifecycle, from development and financing through to operations and optimization. Together with EIG, we intend to apply that discipline to building a competitive and resilient power infrastructure platform that supports the US’ evolving energy needs.”
Building and scaling energy businesses
For EIG, the partnership represents an extension of its strategy in US power generation. EIG has committed more than $14.2 billion across power generation, renewable energy, energy storage and related energy-transition infrastructure globally, experience that informs the firm’s approach to building and scaling energy businesses.
For Acwa, the world’s largest private water desalination company, a leader in the energy transition, and a first mover into green hydrogen at scale, the partnership represents a strategic opportunity to expand its presence in a major global power market, building on its experience delivering large-scale infrastructure across the Middle East, Asia and other international markets. With a global portfolio of 111 assets across 16 countries, representing $127 billion in assets under management, Acwa brings extensive capabilities spanning development, investment, financing, construction, operations, and asset optimization. The partnership will draw on these capabilities as it evaluates acquisition and development opportunities in the US.—TradeArabia News Service
