ENGIE and Ares Deepen Alliance, Expanding Joint U.S. Renewable Portfolio to 4.3 GW

HOUSTON, TX – January 13, 2026 – In a significant move underscoring the accelerating pace of the U.S. energy transition, ENGIE North America and Ares Infrastructure Opportunities funds have once again expanded their strategic partnership, adding a 730-megawatt portfolio of operational renewable assets in Texas. The deal elevates their total joint investment in U.S. solar, wind, and energy storage to an impressive 4.3 gigawatts (GW).

The transaction involves one wind and two solar projects already feeding power into the Texas electric grid, managed by the Electric Reliability Council of Texas (ERCOT). Under the terms of the agreement, ENGIE will retain a controlling ownership stake and continue to serve as the operator and manager of the assets. This latest expansion not only injects much-needed clean power into a rapidly growing market but also highlights a sophisticated financial strategy that is becoming a blueprint for funding large-scale renewable infrastructure.

"The continued growth of our relationship with Ares reflects the strength of ENGIE's portfolio of assets and our track record of delivering, operating and financing growth in the U.S. despite challenging circumstances," said Dave Carroll, CEO and Chief Renewables Officer for ENGIE North America. "The addition of another 730 MW of generation to our existing relationship reflects the commitment both ENGIE and Ares have to meeting growing demand for power in the U.S. and our willingness to invest in meeting those needs."

Bolstering a Power-Hungry Texas Grid

The strategic placement of these new assets within the ERCOT market is no coincidence. Texas is at the epicenter of America's energy evolution, experiencing unprecedented growth in both electricity demand and renewable energy supply. Electricity demand in the state surged 5% in the first nine months of 2025 compared to the prior year, and a staggering 23% since 2021, driven by a booming industrial sector, population growth, and over 200 GW of large load interconnection requests, primarily from data centers.

Simultaneously, Texas has become the nation's leader in green power. By mid-2025, wind and solar power were collectively generating over 40% of the electricity within ERCOT. This rapid buildout has been credited by grid officials as a crucial factor in enhancing reliability, with the chances of rolling blackouts during peak summer demand dropping dramatically. The addition of 730 MW of operational wind and solar capacity from the ENGIE-Ares portfolio directly contributes to this dynamic, providing immediate, clean generation to help stabilize the grid and meet soaring demand.

A Blueprint for Sustainable Growth: Capital Recycling

This transaction is a prime example of ENGIE's 'capital recycling' strategy, a financial model crucial to achieving its ambitious growth targets. By selling a minority stake in a portfolio of de-risked, operational assets to a financial partner like Ares, ENGIE unlocks significant capital that would otherwise be tied up in long-term holdings. This newly liquid capital is then 'recycled' to fund the development and construction of new projects in its extensive pipeline.

This financial mechanism creates a virtuous cycle of growth. It allows ENGIE to continuously leverage its development and operational expertise to bring new projects online, monetize a portion of their value upon completion, and reinvest the proceeds into the next wave of renewable infrastructure. This strategy is essential for the company to advance its global goal of having 95 GW of renewable and storage capacity in operation by 2030. With over 11 GW already in operation or under construction in North America, this partnership model provides the financial engine to maintain momentum in a capital-intensive industry.

The Power of a Deepening Partnership

The success of this strategy hinges on a strong, reliable partnership. The relationship between ENGIE and Ares Infrastructure Opportunities, established just over 18 months ago, has rapidly deepened through a series of major transactions. It began in September 2024 with Ares taking a stake in a 2.7 GW portfolio, followed by another deal for a 900 MW portfolio in March 2025. This latest 730 MW addition is a testament to the success of their prior collaborations.

"ENGIE has been an exceptional partner in our efforts to invest in high-quality infrastructure assets across attractive U.S. markets, and we are pleased to build on our relationship with this latest portfolio acquisition," commented Steve Porto, a Partner in Ares Infrastructure Opportunities.

The alliance combines the strengths of both organizations: ENGIE's deep technical and operational expertise in the energy sector and Ares' vast financial resources and strategic focus on infrastructure investment. For Ares, this deal aligns perfectly with its investment thesis, which targets the energy transition as a key area for growth. The firm has already deployed over $14 billion across more than 350 climate infrastructure assets and is actively expanding its footprint in the U.S. market, leveraging policy incentives like the Inflation Reduction Act to back high-quality renewable portfolios.

This repeated and expanding collaboration demonstrates a powerful model for the industry, where developers and investors form symbiotic relationships to accelerate the transition to a carbon-neutral economy. As the demand for clean energy continues to climb, the ability to finance and build renewable projects at scale is paramount, and the ENGIE-Ares partnership provides a proven roadmap for achieving just that.