A subsidiary of US renewable energy company NextEra Energy Resources has agreed to sell a 50% non-controlling interest in approximately 2.5 GW of renewable capacity in the United States to the Ontario Teachers’ Pension Plan Board (Ontario Teachers) for approximately $ 849 million.
Teachers’ is one of the largest pension plans in the world and claims to be a leading investor in infrastructure.
The remaining 50% stake in the renewable asset portfolio under long-term contract will be sold to NextEra Energy Partners under an agreement signed in October.
NextEra Energy President and CEO Jim Robo said, âThis transaction is expected to generate significant value for NextEra Energy shareholders.
âIn 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 contract and effectively recycle nearly $ 3.4 billion in total capital that is expected to be redeployed into new renewable energy growth opportunities.
NextEra Energy Resources plans to inject the proceeds from the sale into new wind, solar and battery storage growth opportunities, including its renewable energy and storage backlog, which has over 18 GW of capacity.
The deal is expected to close later this year or early next year after customary closing conditions and receiving regulatory approvals.
Chris Ireland, General Manager of New Facilities and Renewable Energy at Ontario Teachers, said: âWe are delighted to make this significant investment and to grow our global portfolio of high quality renewable energy assets.
âNextEra Energy is one of the world’s leading renewable energy companies and they share our goal of shaping a better future through the development of sustainable energy.
âThis investment marks the start of what we expect to be a long-term partnership with NextEra Energy. “