Long time friends and business partners Ares Management have announced a thrilling new joint venture known as Tango. This new effort partners with Savion Equity, which is a subsidiary of Shell. This intentional partnership enables Ares to control 80% of Tango through ownership while Savion continues to be able to own and control 20% of the new entity. Tango’s initial portfolio of solar projects are expected to produce a combined output of 496 megawatts (MW). Those projects will stretch across a number of states, including Ohio, Kentucky, Oklahoma, and Indiana.
Tango’s creation is a significant step for Ares Management and Savion. Its stated goal is to increase access to renewable energy resources in key U.S. markets. The joint venture will leverage Savion’s extensive experience in large-scale solar and energy storage project development, which spans 28 states since its founding in 2019.
Overview of the Joint Venture
Ares Management, the world’s largest alternative investment manager, has partnered with Savion. Together, they hope to improve their practice when it comes to infrastructure investment strategy. Tango will assume control of projects already developed by Savion. This comprises a diversified pipeline of 3,049 MW in solar and energy storage assets that are in development, operational or contracted.
Steve Porto, a partner in Ares Infrastructure Opportunities strategy, sounded a hopeful note on the venture. He stated,
“We look forward to partnering with Savion on this exciting initiative that allows us to draw on our combined capabilities in power generation to support these important assets.”
The partnership’s overarching goal is to position itself to meet the rapidly escalating demand for renewable energy, while providing compelling returns to its investors.
Savion’s Expansive Portfolio
Kansas City, Missouri-based Savion Equity focuses on building and selling utility-scale solar projects. From the very beginning, the company has experienced astounding growth. Today, it is fully engaging in a whole new way by deepening its commitment to renewable energy. The projects under Tango will not only contribute to the overall energy landscape but support environmental sustainability efforts across the United States.
With a focus on delivering renewable power to key energy markets, Savion’s operational prowess complements Ares’ investment strategy. The deal joint venture smartly aims to wring as much value as possible from their newly joined combined power generation portfolio.
According to Greg Joiner, executive vice-president at Shell Power, this investment changes the game. He said,
“The investment by Ares is a testament to Savion’s success building and operating assets that deliver renewable power to key energy markets in the USA.”
Future Prospects
The creation of Tango fits with Ares Management’s larger aims towards investing in essential private infrastructure projects. The firm recently completed a deal to buy a 20% interest in Plenitude from Eni for €2 billion (roughly $2.3 billion). This announcement further underscores the firm’s deep commitment to increasing its investments in renewable energy.
Tango is delving into the stewardship of 496 MW of Savion-developed utility-scale solar projects. Collectively, their goal is to increase electricity supply while remaining the most competitive and flexible in their business model. This joint venture is an important step in their combined commitment to advance the transition to sustainable energy solutions.
