ENGIE, one of the largest players in the world promoting renewable energy, just announced a slowdown. In reality, they’re just slowing down the delivery of new renewable energy projects in the US. Lingering doubts regarding the future of tariffs on imported solar and battery components have compounded this punt. These challenges have presented setbacks for the company, making it hard to predict and finalize pricing for its customers. GENIE is hitting the brakes. The question the company is most interested in ironing out would seem to be how the company’s future projects still to reach their final investment decisions would be impacted by the IRA.
As of the end of Q1 2025, ENGIE is currently building or engineering 8.5 gigawatts (GW) of power. This includes more than 100 projects specifically for renewable energy and battery energy storage systems (BESS). ENGIE remains committed to the work that it has underway even as it scales up its efforts abroad. Most recently, it started building a 400 MWh Battery Energy Storage System (BESS) facility in Kallo, Beveren, Belgium in collaboration with NHOA Energy.
ENGIE continues to reaffirm its guidance for net recurring income from 2025 of between €4.4bn and €5bn. The firm hopes to maintain a controlling interest. In parallel, it will aggressively commercialize and control a varied portfolio of 31 projects in Electric Reliability Council of Texas (ERCOT) and California Independent System Operator (CAISO) territories.
ENGIE North America has entered into a strategic partnership with funds managed by CBRE Investment Management (IM). Together, they plan to deploy a portfolio of potentially 2.4 GW of battery storage assets in Texas and California. Dave Carroll, ENGIE’s chief renewables officer & senior vice-president said he was “thrilled” with the partnership. He praised its role in meeting the growing energy needs of these crucial purple states.
“We are delighted that ENGIE and CBRE IM are partnering in this industry-leading transaction, supporting 2.4GW of storage that will support the growing demand for power in Texas and California.” – Dave Carroll
ENGIE’s finance chief, Pierre-Francois Riolacci, expressed alarm about the challenges of calculating final pricing given the uncertain nature of tariffs. CEO Catherine MacGregor went as far as to say that the IRA was central in determining ENGIE’s future in the US market. She stressed that if these unknowns linger, investors will move their money elsewhere. Or maybe they reallocate their funding toward other promising emerging international markets, such as Brazil, Australia, India, and the Gulf states.
ENGIE meets these challenges head-on. It focuses on its current pipeline and remains nimble to pivot to new opportunities as the market shifts.
