The sale proceeds are expected to be redeployed into the solar, new wind, and battery storage growth opportunities, including NextEra Energy Resources' over 15,000-MW renewables backlog.
FREMONT, CA: NextEra Energy, has declared that a subsidiary of NextEra Energy Resources has made agreements to sell a 90 percent interest in a 1,000 megawatt (MW) portfolio of long-term contracted renewables assets (the portfolio) as well as a 100 percent interest in a 100-MW solar-plus-storage project for nearly $1.3 billion in total proceeds, including tax equity, as well as subject to working capital and other adjustments. The portfolio is being acquired by NextEra Energy Partners, LP and a consortium of private infrastructure investors spearheaded by KKR (the investors) in two separate transactions.
The sale proceeds are expected to be redeployed into the solar, new wind, and battery storage growth opportunities, including NextEra Energy Resources' over 15,000-MW renewables backlog. The attractive capital recycling opportunity offers significant value to NextEra Energy Resources and emphasizes the value of its renewables development platform. Over the operating life of the assets, NextEra Energy Resources might also receive an ongoing annual fee income of nearly $7 million in year one and escalating thereafter, from the investors for operations, management, and maintenance services, and the transaction would possibly be immediately accretive to earnings.
"These transactions are expected to generate significant value for NextEra Energy shareholders," stated Jim Robo, NextEra Energy chairman and CEO. "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."