AES Galabovo Power Plant: BlackRock-Led Consortium to Acquire for $33.4 Billion

The future of Bulgaria’s largest thermal power plant, AES Galabovo, is set for a significant shift as a major international consortium has agreed to acquire its parent company, AES Corporation, in a deal valued at $33.4 billion. The agreement, announced Monday, marks one of the largest acquisitions in the energy sector and signals growing investor interest in power generation assets, particularly those positioned to serve the escalating energy demands of emerging technologies like artificial intelligence.

The consortium is led by Global Infrastructure Partners, a subsidiary of BlackRock, and EQT AB, a Swedish private equity firm. Joining them are the California Public Employees’ Retirement System (Calpers), one of the largest pension funds globally, and the Qatar Investment Authority, the sovereign wealth fund of Qatar, as reported by the Mediapool.bg.

Deal Structure and Financials

The deal will observe AES shareholders receive $15 per share in cash, totaling $10.7 billion in equity value. Although, the total enterprise value reaches $33.4 billion when including AES’s outstanding debt of $27.56 billion, which will demand to be restructured. This substantial debt component highlights the financial complexities involved in the transaction. The agreement has been finalized, and the deal is expected to close by the end of 2026, according to Darik Business Review.

Impact on AES and Bulgaria

AES, a global energy corporation operating power plants in the United States and 13 other countries, has faced challenges in the public markets recently. The $15 per share offer represents a 13% discount from the stock’s closing price before the deal announcement on March 2, 2026, a reflection of the company’s significant debt and future capital investment needs. The sale is intended to provide AES with the capital necessary to expand its energy production in the United States, particularly in clean energy solutions.

In Bulgaria, AES owns and operates the Galabovo thermal power plant, the most modern coal-fired power plant in the country, as well as the St. Nikola wind farm near Kavarna. The future of the Galabovo plant is now uncertain, as its power purchase agreement with the National Electric Company (NEC) expires in May 2026. There are concerns that AES Galabovo could follow the path of ContourGlobal Maritsa East 3, another coal-fired plant that suspended operations in February 2024 before resuming with a new energy storage project. A potential shutdown of AES Galabovo could create significant electricity supply issues for Bulgaria.

Growing Demand and the AI Connection

The acquisition comes amid a surge in investor interest in energy companies, driven by the rapidly increasing energy demands of new technologies, particularly artificial intelligence. Data centers, essential for AI development and operation, are energy-intensive, leading to a projected 25% increase in energy demand in the U.S. By 2030. AES has already secured clean energy agreements exceeding 11.8 GW with tech giants like Microsoft and Alphabet, demonstrating the growing link between energy production and the tech sector. This trend is detailed in reporting from Novini.bg.

Regional Operations and Continuity

AES has assured stakeholders that its operations in Indiana and Ohio will remain local, managed by existing companies to ensure service continuity and stable pricing. However, the impact of the ownership change on AES’s Bulgarian operations remains unclear. The company has not yet provided details on how the transition will affect its business in the country.

What’s Next: Regulatory Scrutiny and Deal Completion

The completion of the deal is subject to customary closing conditions, including regulatory approvals. While the specifics of the regulatory review process in Bulgaria are not yet public, the transaction will likely face scrutiny from competition authorities to ensure it does not create anti-competitive conditions in the energy market. The consortium will also need to successfully restructure AES’s $27.56 billion debt. The deal is anticipated to finalize before the end of 2026, but potential delays related to regulatory hurdles or financing arrangements could push the timeline into early 2027.

The acquisition of AES marks a pivotal moment for the company and the broader energy sector. The involvement of major institutional investors signals confidence in the long-term prospects of power generation, while the looming expiration of AES Galabovo’s power purchase agreement introduces a significant element of uncertainty for Bulgaria’s energy security. Monitoring the progress of the deal’s completion, the restructuring of AES’s debt, and any announcements regarding the future of AES Galabovo will be crucial in the coming months.