EQT Transition Infrastructure has announced the acquisition of Scale Microgrids, a leading developer and operator of microgrids and distributed energy resources, from Warburg Pincus and other existing shareholders.
This acquisition marks EQT's first North American investment under its Transition Infrastructure strategy.
The strategy, launched in December 2024, aims to scale businesses that facilitate the transition to clean energy.
The strategy's inaugural investment was in ju:niz Energy, a battery energy storage system developer and operator.
EQT Transition Infrastructure partner and head Jan Vesely said: “We are thrilled that Scale Microgrids will become EQT Transition Infrastructure’s first investment in North America, underscoring our commitment to driving the energy transition globally and supporting a decarbonised and climate-resilient future while addressing the accelerated electricity demand in North America.
“We see enormous potential to accelerate Scale’s growth and establish it as one of the market’s leading vertically integrated energy companies.”
Scale Microgrids, headquartered in Ridgewood, New Jersey, offers a portfolio of around 250MW of operating and in-construction assets, with an additional 2.5GW in the pipeline.
The company deploys diverse technologies such as solar, battery storage, natural gas generators, fuel cells and combined heat and power systems, positioning it as one of the largest pure-play microgrid portfolios in the US.
Scale Microgrids CEO Ryan Goodman said: “Today marks the start of an exciting new chapter for our company. EQT brings a depth of experience, resources and capital that will enable us to continue pursuing our vision to power the world with distributed energy.
“I am incredibly proud of what our team has built and believe this transaction will enable us to unlock even greater opportunities for the customers, employees and communities we serve. We are appreciative of our past shareholders, led by Warburg Pincus, for their support in helping us get to where we are today.”
The acquisition from Warburg Pincus and other shareholders aligns with EQT's goal to support clean energy transition and a resource-efficient economy.
Warburg Pincus managing director Ryan Dalton said: “Scale has achieved incredible growth over the past five years, establishing a strong reputation as one of the leading providers of next generation power infrastructure.
“The company has successfully grown to nearly 3GW of operating, in-construction and near-term pipeline assets, closed multiple financings to fund future project development and maintains a strong customer base. We look forward to watching the company’s next phase of growth with EQT, and continuing their mission to provide cleaner, cheaper and more reliable power.”
The transaction is subject to customary conditions and approvals.
EQT was advised by Weil, Gotshal & Manges (legal) and Guggenheim Securities (financial).
Scale Microgrids received advice from Latham & Watkins (legal), Nomura Greentech (financial) and Truist Securities (financial).
