Power generation and transmission business LS Power Development, LLC, has signed a definitive agreement to acquire EVgo from its current owner, Vision Ridge Partners. EVgo is one of the leading private operators of electric vehicle charging stations in the United States.
LS Power is employee-owned and has offices in New York, New Jersey, Missouri, California, and Texas. While the press release does not mention any specific synergies, in April 2019, EVgo announced plans to build 14 battery storage systems at fast-charging locations to shave off peak demand charges.
And in October, LS Power made big news in the battery world, announcing that it received a key permit to build a 316-megawatt battery energy storage project in New York City, adjacent to their 2.2-megawatt natural gas plant in Queens. Furthermore, EVgo sells electricity to EV drivers for prices that range from $0.41 per kWh under ideal conditions to well over $0.60 per kWh. Conversely, LS Power generates power for somewhere between 1% to 5% of that cost.
In May 2019, EVgo pledged to contract for 100% renewable power for its direct current fast-charging (DCFC) stations. Today’s press release restates that commitment.
LS Power has developed, constructed, managed, or acquired more than 41,000 MW of power generation and 630 miles of transmission, for which it has raised over $42 billion in debt and equity financing to invest in North American infrastructure.
LS Power digging into their deep pockets in order to invest in the EV space should be interesting. If they can figure out how to make EVgo’s DCFC stations more affordable, that would be a very welcome development.