La Caisse Acquires Australia's Edify Energy For C$1 Billion
Canadian pension fund La Caisse has fended off rivals to buy renewables developer Edify Energy for $1.1 billion, giving it exposure to Australia’s clean energy sector which is expected to grow rapidly to support the government’s ambitious climate targets.
La Caisse, which has almost $C500 billion ($550 billion) of net assets, will commit about $C1 billion of equity to the deal, with about a third of the total going on the acquisition and the rest funding two advanced solar and battery projects.
The takeover of Edify will give the Canadian firm a significant foothold in the Australian clean energy sector, where it has been seeking an entry for several years, including an unsuccessful bid for Tilt Renewables in 2021.
“We don’t have renewables in Australia, which is something I was trying to fix because I think it’s a great market … we want to be part of that,” said Emmanuel Jaclot, executive vice president and head of infrastructure and sustainability at La Caisse, which was previously known as CDPQ.
“We’re hoping we can turbocharge the development of Edify.”
Australia’s climate targets, including 82 per cent renewable energy by 2030, require an accelerated rollout of renewable energy and storage projects at about double the current rate of expansion.
The Albanese government’s 2035 emissions reduction target for a 62-70 per cent reduction in carbon emissions from 2005 is based on lifting renewables to 90 per cent of the electricity fuel mix within a decade.
The deal is the latest in a string of renewable energy transactions recently from major overseas investors such as US private equity firms KKR and Carlyle Group, and major Dutch pension fund APG.
Sydney-based Edify, founded in 2015 by one-time MLC executive and business developer John Cole, will sit within La Caisse’s existing portfolio in Australia. That includes interests in the Port of Brisbane, Sydney road tunnel WestConnex and NSW high-voltage power grid owner Transgrid.
The two late-stage solar and storage projects, both in Queensland, will now move swiftly towards financial close, which is envisaged this year and next. Edify will also be able to speed up its development pipeline of projects, totalling more than 11 gigawatts, Jaclot said from Montreal.
Under the ownership of La Caisse, Edify could continue with what it has done successfully over the past few years: finding sites, securing development approvals, locking in customer contracts, and sourcing competitive equipment, but without the extra task of having to find funding to build projects.
“We’re trying to take one of these pain points out for the management,” Jaclot said.
“They’re going to have the capital backing them, so they’re going to have to do exactly what they’ve been doing in the past, except they’re not going to have to worry too much about capital.
“We’re just making their life easier. It’s very powerful when you have a great backer with long-term capital that tells you what they need, and so you can build and develop projects to suit their need – our need as a pension plan.”
One difference for Edify in the future is that, instead of selling its projects once they are developed, it will now continue to own most of its plants, building a portfolio of generation and storage, backed by long-term contracts with customers.
The two advanced-stage solar and battery projects that will now move towards financial close – the Smoky Creek and Guthrie’s Gap project in central Queensland, and the Ganymirra and Majors Creek project near Townsville, are underpinned by contracts with Rio Tinto and the federal government, respectively.
“We’re not a short-term investor hoping to make a few bucks and run away – we are here for the long run,” Jaclot said.
He said the final level of Australia’s 2035 emissions target announced last week was not as important for La Caisse as the long-term direction of the market, which also outweighed the several hurdles facing the industry, such as slow planning approvals, pushback from rural communities and delays in adding new transmission lines.
“There’s a well-constructed plan to build out renewables across Australia, so that’s what we’re buying into,” Jaclot said. “Whether it takes a couple of years more or less, that’s not the key deciding factor for us.”
For Edify – which tapped Lazard Australia earlier this year to find a deep-pocketed backer – the financial capacity of La Caisse will have advantages across the business. For example, Cole said it would help with sequencing projects more efficiently and dealing with equipment suppliers and offtakers.
“There will be a lot of benefit for Edify knowing that it has that balance sheet strength coming from La Caisse to enable projects to be financed and delivered more quickly,” he said.
Nicolas Van Praet of the Globe and Mail also reports Caisse de dépôt et placement du Québec to buy Australia’s Edify Energy:
Caisse de dépôt et placement du Québec is buying Australian renewable energy and battery developer Edify Energy, part of a wider push to expand its holdings Down Under in the years ahead.
The Canadian pension fund giant, now commonly known as La Caisse, said Monday that binding agreements have been struck that will see it acquire Edify and inject capital into the company to finance two ready-to-build solar-and-battery projects now underway. It expects to commit about $1-billion in all.
The two projects will see Edify deliver 900 megawatts of electricity production capacity and 3,600 megawatt-hours of storage. Mining giant Rio Tinto PLC and the Australian government have signed offtake agreements to purchase the resulting power, the Caisse and Edify said in a joint statement.
The investment is the latest from the Caisse in Australia, which it considers a priority market with particular opportunities in infrastructure and real estate.
The pension fund had about $13-billion of its total $496-billion in assets invested in the country at last count, twice the amount it had five years ago, and it plans to double that amount again by 2030. Among its infrastructure holdings in Australia are the Sydney Metro, Port of Brisbane, and Transgrid – which runs the country’s biggest electricity transmission network.
This summer, the Caisse completed its first bond issue in the Australian market, raising $1.6-billion from what it called “strong interest” from investors in the Asia Pacific and elsewhere.
Demand for energy storage continues to escalate as countries decarbonize their economies by integrating renewable power and needs increase from customers such as data centres and manufacturers, according to Wood Mackenzie, a global research and consultancy group serving the energy and mining industries. China led the world in capacity growth in 2024 as it speeds up adoption of wind and solar energy.
Edify was founded in 2015 and pioneered Australia’s first utility-scale solar and battery storage project three years later, according to the company. It has since delivered 11 projects yielding more than 1.1 gigawatts of capacity, with a pipeline of work for another 11 gigawatts to come.
“The agreement with La Caisse is a pivotal moment for Edify, providing balance sheet strength to seriously ramp up Edify’s speed of execution of firm, dispatchable green generators,” the company’s founder and executive, John Cole, said in the statement. “We have found the perfect owner to supercharge the business.
Earlier today, La Caisse issued a press release stating it plans to acquire Edify, a leading Australian renewable energy and battery storage company:
Edify Energy (Edify), a leading Australian renewable energy and battery storage company, and global investment group La Caisse (formerly CDPQ), today announced that binding agreements have been entered into under which La Caisse will acquire Edify and support its next phase of growth.
Once completed, the transaction, together with further equity capital funding, is expected to represent an investment of approximately CAD 1 billion (AUD ≈1.1 billion). This investment will fund the acquisition of Edify and provide equity to finance two ready-to-build integrated solar and battery energy storage system (BESS) hybrid projects totaling 900 MW / 3,600 MWh for offtake partners, Rio Tinto and the Commonwealth of Australia. It will also support the company’s significant pipeline of hybrid and battery storage projects of more than 11 GW.
Since its founding in 2015 by John Cole, Edify has grown into one of Australia’s leading green electricity companies, with expertise spanning the full life-cycle of renewable energy development and operations. Innovation is at Edify’s core, having pioneered the country’s first utility-scale solar and battery storage project in 2018 and has since delivered 11 projects across New South Wales, Queensland, and Victoria, totaling more than 1.1 GW of capacity. This success is powered by Edify’s highly talented and skilled team, whose deep expertise and commitment to innovative, commercial solutions has been instrumental in structuring, financing and bringing these projects to life. By combining solar generation with advanced storage solutions, Edify is enhancing grid reliability and accelerating Australia’s transition to clean energy.
“The agreement with La Caisse is a pivotal moment for Edify, providing balance sheet strength to seriously ramp up Edify’s speed of execution of firm dispatchable green generators. I am so very proud of the business that Edify has become and the exceptional team that creates and delivers the solutions to meet and exceed the needs of our customers and the grid. In La Caisse, we have found the perfect owner to supercharge the business and take Edify’s enviable market position to the next level,” said John Cole, Founder and Executive Chairman.
"Our acquisition of Edify highlights the track record and expertise of its team and a commitment to Australia’s clean energy future," said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure and Sustainability at La Caisse. "With our long-term capital and sustainability expertise, Edify will accelerate the delivery of large-scale renewable and storage projects that strengthen the grid and advance decarbonization. This reflects our strong conviction in the critical role these technologies will continue to play in the global energy transition."
Some elements of the transaction are subject to customary change-of-control and regulatory approvals.
La Caisse was advised by ICA Partners and Clifford Chance as financial adviser and legal adviser, respectively, while Edify was advised by Lazard Australia and Herbert-Smith Freehills Kramer as financial adviser and legal adviser, respectively.
ABOUT EDIFY
Edify is a renewable energy and storage company, leading the industry in the development and construction of new energy generation, storage and grid infrastructure to support Australia’s energy transition.
Delivering more than AUD 2 billion of investment in Australia, Edify has successfully developed and financed over 1 GW of utility-scale solar farms and battery energy storage systems and, in addition to projects currently in construction, is managing the operations of 6 solar farms and 5 battery energy storage systems that it has developed, financed and constructed. Collectively, its utility-scale solar farms produce enough electricity to power over 280,000 Australian homes.
Edify is continuing to develop a large portfolio of renewable energy and storage projects and is committed to creating and delivering innovative clean green energy solutions. Edify is involved in the full lifecycle of renewable energy and storage projects, including greenfield development, project structuring and financing, construction management and long-term operational asset management. To learn more visit edifyenergy.com.
À PROPOS DE LA CAISSE
At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.
As a global investment group, we are active in the major financial markets, private equity, infrastructure, real estate and private credit. As at June 30, 2025, La Caisse’s net assets totalled CAD 496 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.
Roughly two weeks ago, I discussed how La Caisse and CEFC launched a A$250m agricultural platform to generate carbon credits for Rio Tinto. Read the comment here.
Today we find out La Caisse is acquiring Edify Energy, a renewable energy and storage company, leading the industry in the development and construction of new energy generation, storage and grid infrastructure to support Australia’s energy transition.
It's fair to say Edify is a leader in Australia's massive renewable energy market:
Delivering more than AUD 2 billion of investment in Australia, Edify has successfully developed and financed over 1 GW of utility-scale solar farms and battery energy storage systems and, in addition to projects currently in construction, is managing the operations of 6 solar farms and 5 battery energy storage systems that it has developed, financed and constructed. Collectively, its utility-scale solar farms produce enough electricity to power over 280,000 Australian homes.With the financial backing of La Caisse, the company can continue growing with out the pressure of having to sell assets to finance its next project.
From the first article, Emmanuel Jaclot, EVP and Head of Infrastructure and Sustainability at La Caisse is quoted as saying:
“We’re not a short-term investor hoping to make a few bucks and run away – we are here for the long run. There’s a well-constructed plan to build out renewables across Australia, so that’s what we’re buying into, Whether it takes a couple of years more or less, that’s not the key deciding factor for us.”
He's right, they want this company to continue growing nicely over the next few years to see its enterprise value grow.
Basically, Edify will become another important renewable/ transition energy asset in La Caisse's Australian portfolio and it will grow very nicely with its backing.
From the first article above:
Under the ownership of La Caisse, Edify could continue with what it has done successfully over the past few years: finding sites, securing development approvals, locking in customer contracts, and sourcing competitive equipment, but without the extra task of having to find funding to build projects.
Lastly, it is worth noting La Caisse secured Edify in an environment where there is a lot of competition for such renewable energy assets, that says a lot, it was the right fit in every sense for both parties.
Below, a 2022 episode of the Energy Unplugged podcast where their MD for Australia and California Hugo Batten is joined by founder and CEO of Edify Energy, John Cole. Great discussion, worth listening to this carefully.
Also, Greg and Tim are landowners and neighbours in Gannawarra Shire, Victoria. Greg’s farmland hosts the 60 MWp Gannawarra Solar Farm, developed by @edifyenergy, the first utility-scale solar farm to be constructed in Victoria. It is also integrated with a 25 MW energy storage system. Tim’s land is soon to play host to a battery to help firm the renewable energy supply in the area.
Renewable energy developments can provide consistent, drought-proof income to supplement farming activities, and traditional farming can continue around renewable energy infrastructure.
Third, Australia is spending $35 billion on one of the most ambitious clean energy projects in history. With 40% of homes already powered by rooftop solar and massive projects like the world’s longest undersea power cable connecting Australia to Singapore, the country is racing to become a global renewable energy superpower.
But there’s a catch if the sun isn’t shining and the wind isn’t blowing, the power grid risks total collapse. From statewide blackouts in 2016 to the national grid shutdown in 2022, Australia has faced serious energy failures before.
The solution? Gigantic batteries some larger than football stadiums designed to store renewable energy and keep the lights on. These mega batteries could revolutionize the grid and cut coal for good. But with demand expected to grow 10x by 2035, can Australia really build enough storage in time? Watch this clip from Unthinkable Build.
Lastly, Sky News Australia reveals the true cost of the race to renewable energy in an exclusive investigation by political contributor Chris Uhlmann. Great report, well worth watching.
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