The company has also signed a nearly $824m convertible equity portfolio financing deal with Apollo Global Management to buy out the investor's equity interest in the portfolio
NextEra Energy Partners has signed an agreement with a subsidiary of NextEra Energy Resources to acquire a 50% stake in an approximately 2.52GW renewables portfolio in the US for $824m.
The portfolio includes wind, solar and solar-plus-storage assets spread across various states in the country, with a weighted remaining contract life of approximately 19 years.
The assets include 501MW White Mesa Wind and 300MW Hubbard Wind, located in Texas; 301MW Irish Creek Wind and 99MW Ensign Wind Energy in Kansas; and a 251MW wind generation facility in Nebraska.
The Georgia projects included in the deal are Cool Springs Solar, a 213MW solar generation and 40MW solar storage facility; and Quitman II Solar, a nearly 150MW solar generation facility.
Other assets include 251MW Little Blue Wind in Nebraska; 107MW Minco Wind Energy III in Oklahoma; and a 49MW solar generation facility in Connecticut.
NextEra Energy Partners chairman and chief executive officer Jim Robo said: “The transactions announced today support NextEra Energy Partners’ continued ability to execute on its long-term growth plan and access attractive low-cost sources of capital.
“The acquisition of the high-quality, long-term contracted renewable energy assets extends the partnership’s geographic footprint into three new states and expands its ownership of battery storage assets, which would total nearly 90 megawatts at close.”
In connection with the transaction, the company has also signed a nearly $824m convertible equity portfolio financing deal with Apollo Global Management (Apollo).
The financing is expected to enable the company to periodically buy out the investor’s equity interest in the portfolio.
Robo said: “Additionally, the convertible equity portfolio financing we are announcing today is the lowest cost in the partnership’s history, with a more than 250 basis points lower implied return to the investor in the buyout price than the first iterations of the structure in 2018 and early 2019.
“This significant access to low-cost capital and access to NextEra Energy Resources’ industry-leading renewables portfolio enables NextEra Energy Partners to be uniquely positioned to take advantage of the clean energy transformation and meet its long-term growth objectives.”
The transaction is expected to be completed later this year or in early 2022, subject to customary closing conditions and receipt of certain regulatory approvals.
Upon completion of the transaction, NextEra Energy Partners is anticipated to contribute its stakes in the acquired assets to a new portfolio.
The total price of the acquisition also includes NextEra Energy Partners’ share of the portfolio’s total tax equity financings, which is estimated to be nearly $866m at the time of closing.
Headquartered in Juno Beach, Florida, NextEra Energy Partners is a growth-oriented limited partnership formed by NextEra Energy.
The company owns interests in geographically diverse wind and solar projects in the US as well as natural gas infrastructure assets in Texas and Pennsylvania.