The portfolio consists of 13 long-term contracted renewable assets, which are geographically diversified across US power markets
Ontario Teachers’ Pension Plan Board has signed an agreement with NextEra Energy Resources to acquire a 50% stake in the 2.52GW US renewables portfolio for $849m.
The portfolio consists of 13 long-term contracted renewable assets, which are geographically diversified across US power markets.
It includes 501MW White Mesa Wind, 301MW Irish Creek Wind, 300MW Hubbard Wind, 213MW Cool Springs Solar, 251MW Little Blue Wind and 200MW Dodge Flat Solar, among others.
The Greenfield and Renewables team, which is part of the Infrastructure & Natural Resources department at Ontario Teachers’, is leading the investment for the acquisition.
Ontario Teachers’ Greenfield and Renewables managing director Chris Ireland said: “We are excited to make this significant investment and to grow our global portfolio of high-quality renewable energy assets.
“NextEra Energy is one of the world’s leading renewable energy companies and they share our focus on shaping a better future through the development of sustainable energy. This investment marks the beginning of what we expect will be a long-term partnership with NextEra Energy.”
NextEra Energy Partners will acquire the remaining 50% stake in the portfolio under a sale agreement signed in October this year.
The transaction is expected to be closed later this year or in early 2022, subject to customary closing conditions and receipt of certain regulatory approvals.
TD Securities served as financial advisor to Ontario Teachers’ in connection with the transaction, while Kirkland & Ellis was its legal advisor.
NextEra Energy Resources intends to deploy the sale proceeds into new wind, solar and battery storage growth opportunities, including the company’s over 18GW renewables and storage backlog.
In November last year, the company agreed to sell a 90% stake in a 1GW renewables portfolio and a 100% stake in a 100MW solar-plus-storage project in the US to NextEra Energy Partners (NEP) and a consortium led by KKR.