NextEra Energy Resources sells a 50% non-controlling interest in a 2,520 megawatt (MW) portfolio of contract renewable assets to the Ontario Teachers’ Pension Plan Board, one of the largest pension plans in the world.
The remaining 50% stake in the portfolio will be sold to NextEra Energy Partners. NextEra Energy plans to sell the assets for approximately $ 866 million.
The proceeds from the sale are expected to be invested in new wind, solar and battery storage opportunities. NextEra Energy Resources is also expected to earn approximately $ 16 million in annual fee revenue in the first year and will increase thereafter.
“In addition to generating attractive ongoing fee income, the sale of 50% of the portfolio to NextEra Energy Partners and 50% to a high-quality partner like Ontario Teachers’ provides an opportunity to take advantage of strong product demand. high-quality, renewable energy assets under long-term contracts and efficiently recycle nearly $ 3.4 billion of total capital that should be redeployed to new renewable energy growth opportunities, ”said Jim Robo, president and CEO of NextEra Energy. “The transactions highlight the value of NextEra Energy Resources‘ cutting edge development platform and position us well to continue to capitalize on the strong renewable energy development environment that is driving clean energy transformation by reshaping our industry. “
The sale consists of a 50 percent indirect interest in White Mesa Wind, a 501 MW wind power plant in Texas; Irish Creek Wind, a 301 MW wind power plant in Kansas; Hubbard Wind, a 300 MW wind power plant in Texas; Cool Springs Solar, a 213 MW solar generation and 40 MW solar storage facility in Georgia; Little Blue Wind, a 251 MW wind power plant in Nebraska; Dodge Flat Solar, a 200 MW solar generation and 50 MW solar storage facility in Nevada; Elora Solar, a 150 MW solar power generation facility in Tennessee; Quitman II Solar, a 150 MW solar power plant in Georgia; Fish Springs Ranch Solar, a 100 MW solar power plant and 25 MW solar storage facility in Nevada; Minco Wind Energy III, a 107 MW wind power plant in Oklahoma; Ensign Wind Energy, a 99 MW wind power plant in Kansas; Borderlands Wind, a 99 MW wind power plant in New Mexico; and Quinebaug Solar, a 49 MW solar power generation facility in Connecticut.
NextEra Energy expects to complete the transaction later this year or early 2022, subject to regulatory approvals.