EQT Acquires Scale Microgrids To Boost Clean Energy Transition

EQT Transition Infrastructure took a significant stride in its journey of clean energy investment by buying Scale Microgrids, the leading North American developer of distributed energy systems. EQT's North American Transition Infrastructure strategy, developed to support initiatives for global energy transition, had its first acquisition in the US-based Scale Microgrids, which buys out existing shareholders including Warburg Pincus as part of this deal. Through this acquisition, EQT would be strengthening the resilience of the energy supply while addressing the complexities of the grid and supporting efforts toward decarbonization.

Scale Microgrids is a Ridgewood, New Jersey headquartered company that has built a robust portfolio of assets designed to address the imperatives confronting an evolving energy market. To date, the company manages 250 megawatts in operational and under-construction microgrid assets, with a development pipeline that exceeds 2.5 gigawatts. Its projects bring together a range of technologies-from solar energy, battery storage, and natural gas generators to fuel cells and combined heat and power systems-for reliable and sustainable energy supply to a vast range of customers. These are commercial and industrial clients, electric vehicle fleet operators, data centers, municipalities, hospitals, and agricultural enterprises.

We are thrilled that Scale Microgrids will become EQT's first North American investment, underscoring our commitment to driving the energy transition globally and supporting a decarbonized and climate-resilient future." "The investment fits with our overall strategy of building innovative solutions in the clean energy space as demand for sustainable and resilient energy systems increases across the globe," added Vesely, EQT Transition Infrastructure partner and head.

For EQT, this is a follow-up to an investment it made in ju:niz Energy-a battery energy storage company-in December 2024. Both of the investments reflect EQT's strategic interest in high growth sectors in the clean energy landscape. Scale Microgrids is set to gain much more from EQT's resources in the form of capital infusion and operational expertise. All these would enable the company's technology platform and enhance project execution capabilities as well as commercial processes.

According to Goodman, the partnership has transformative potential. "EQT's experience and resources will enable us to further our vision of powering the world with distributed energy. This transaction opens new opportunities for our customers, employees, and the communities we serve." Other stakeholders share Goodman's optimism that the acquisition positions Scale to play a pivotal role in addressing the energy challenges of the future.

The focus on distributed energy systems by Scale comes at a very crucial time, when the energy grid is under immense pressure from all sides. The energy demand in data centers is growing rapidly, electric vehicles are gaining widespread acceptance, and power outages are occurring frequently, which is putting pressure on the traditional grid infrastructure. Scale's innovative solutions address these issues by providing reliable, resilient, and cost-effective power, thereby reducing dependence on conventional grid services.

Ryan Dalton, Managing Director at Warburg Pincus, underscored Scale’s achievements over the past five years, noting, “Scale’s growth has established it as a leader in next-generation power infrastructure. We’re excited to see the company’s continued success with EQT.” Dalton’s comments reflect the confidence that Scale’s stakeholders have in its potential to further disrupt the energy market with EQT’s backing.

This acquisition also reflects EQT's commitment to advancing decarbonization and climate resilience. The investment in distributed energy solutions aims to address some of the most pressing challenges in the energy sector while supporting the transition to a cleaner and more sustainable future. The company's focus on innovation and strategic expansion underscores its ambition to lead in the high-growth distributed energy market.

In addition to further enhancing Scale's operational capabilities, EQT has planned strategic investments in commercial processes, software systems, and the development of new projects. Such efforts will ensure that Scale will be the most prominent company within distributed energy that can fulfill diverse customer needs across time.

It's a milestone not only for EQT and Scale Microgrids but also an indicator of how important distributed energy systems are in the global energy transition. Amidst the increasing challenges of climate change and energy resilience, partnerships such as this one will likely become pivotal in creating a sustainable future.