NextEra Energy has entered into agreements with sell a 90% interest in a 1,000 megawatt (MW) portfolio of long-term contracted renewables assets and a 100% interest in a 100MW solar-plus-storage project for approximately $1.3 billion in total proceeds.
The portfolio is being acquired by NextEra Energy Partners and a consortium of private infrastructure investors led by KKR in two separate transactions.
The sale proceeds are expected to be redeployed into new wind, solar and battery storage growth opportunities, including NextEra Energy Resources’ more than 15,000-MW renewables backlog.
Over the operating life of the assets, NextEra Energy Resources is expected to receive ongoing annual fee income of approximately $7 million in year one and escalating thereafter, from the investors for operations, maintenance and management services, and the transaction is expected to be immediately accretive to earnings.
“These transactions are expected to generate significant value for NextEra Energy shareholders. In addition to generating attractive ongoing fee income, the sale provides an opportunity to take advantage of the robust demand for high-quality, long-term contracted renewable energy assets and efficiently recycle approximately $1.3 billion in total capital that can be redeployed into new renewables growth opportunities. The transactions highlight the value of NextEra Energy Resources’ best-in-class development platform and position us well to continue to capitalize on what we believe to be the best renewables development environment in our history.”Jim Robo, NextEra Energy chairman and CEO.
The investors are purchasing a 50% equity interest in the portfolio and NextEra Energy Partners is purchasing a 40% equity interest.
NextEra Energy Partners’ acquisition will also include 100% of the membership interests in Wilmot Solar Energy Center, a project company that owns a 100MW solar and 30MW storage generation facility located in Arizona.
NextEra Energy Resources will have a right of first offer on the investors’ 50% equity interest in the portfolio.
The transaction is expected to be completed in the fourth quarter of 2020, subject to customary closing conditions and the receipt of certain regulatory approvals.