Partners Group, a leading private equity firm, agreed to acquire a portfolio of California natural gas-fired power plants from Middle River Power and its partner, Avenue Capital Group, for $2.2bn.

The acquisition includes the 1,200-megawatt (MW) Inland Empire Energy Center, the 965-MW La Paloma Generating Station, and the 615-MW El Segundo Energy Center. These facilities play a crucial role in providing reliable electricity to California’s grid, especially during peak demand periods.

Partners Group plans to invest in these assets to enhance their operational efficiency and environmental performance. This move aligns with the firm’s strategy to support the transition to a more sustainable energy future while ensuring grid reliability.

This transaction underscores the growing interest of private equity firms in the energy sector, particularly in assets that can provide stable returns while contributing to the energy transition.

The deal is subject to customary closing conditions and regulatory approvals. It is expected to close later this year.