German energy giant RWE has completed a deal to offload its U.S. distributed clean energy business to Goldman Sachs, reshaping its U.S. renewable energy strategic layout.

RWE Americas sealed the deal this week with Goldman Sachs Alternatives, Goldman Sachs’ alternative investment division, for the sale of its Distributed Clean Energy (DCE) division. The transaction covers around 350 megawatts of operational distributed renewable assets spread over 16 U.S. states, alongside a 1.2 gigawatt pipeline of projects under development.

RWE commits to providing ongoing operation and maintenance as well as project development services post-sale to guarantee stable business continuity. A large number of relevant employees will transfer alongside the asset ownership. Financial terms of the deal remain undisclosed.

The divestment enables RWE to concentrate resources on its large-scale utility power assets in the United States. Its current U.S. utility-scale portfolio totals 13GW across 27 states.

Teresa Mattamouros, Managing Director of Infrastructure at Goldman Sachs Alternatives, stated the purchase creates an attractive chance to build a top-tier distributed generation platform amid major shifts in U.S. power infrastructure. She noted DCE boasts robust contracted, diversified operational assets plus a substantial protected development pipeline.

Andrew Flanagan, CEO of RWE Americas, commented that the transaction helps RWE streamline its strategy to expand U.S. utility-scale power business, while letting the DCE business thrive under new ownership.