NextEra Energy announces agreement to sell a 50% interest in an approximately 2,520-megawatt portfolio renewables project to a third party, highlighting the value of its best-in-class development program – EQ Mag Pro

NextEra Energy announces agreement to sell a 50% interest in an approximately 2,520-megawatt portfolio renewables project to a third party, highlighting the value of its best-in-class development program.

JUNO BEACH, Fla : NextEra Energy, Inc. (NYSE: NEE) today announced that a subsidiary of NextEra Energy Resources, LLC has entered into an agreement to sell a 50% non-controlling interest in an approximately 2,520 megawatt (MW) portfolio of long-term contracted renewables assets (the portfolio) to the Ontario Teachers’ Pension Plan Board (Ontario Teachers’ or the investor), one of the world’s largest pension plans and a leading infrastructure investor, with approximately C$227.7 billion in net assets.

The remaining 50% interest in the portfolio is under an agreement to be sold by NextEra Energy Resources to NextEra Energy Partners, LP (NYSE: NEP) pursuant to a purchase and sale agreement executed on Oct. 21, 2021 between a subsidiary of NEP and a subsidiary of NextEra Energy Resources.

The sale proceeds are expected to be redeployed into new wind, solar and battery storage growth opportunities, including NextEra Energy Resources’ more than 18,000-MW renewables and storage backlog. This attractive capital recycling opportunity provides significant value to NextEra Energy Resources and highlights the value of its renewables development platform. Over the operating life of the assets in the portfolio, NextEra Energy Resources is also expected to receive ongoing annual fee income of approximately $16 million in year one and escalating thereafter for operations, maintenance and management services, and the transaction is expected to be accretive to earnings and generate an overall improvement in net present value for NextEra Energy shareholders.

“This transaction is expected to generate significant value for NextEra Energy shareholders,” said Jim Robo, NextEra Energy chairman and CEO. “In 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 the robust demand for high-quality, long-term contracted renewable energy assets and efficiently recycle nearly $3.4 billion in total capital that is expected to 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 the robust renewables development environment that is driving the clean energy transformation reshaping our industry.”

“We are excited to make this significant investment and to grow our global portfolio of high-quality renewable energy assets,” said Chris Ireland, managing director, Greenfield and Renewables at Ontario Teachers’. “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.”

Portfolio acquisition details

The contracted renewables portfolio of wind, solar and solar-plus-storage assets has a strong and diverse mix of investment-grade counterparties and cash available for distribution (CAFD)- weighted remaining contract life of approximately 19 years. The portfolio to be acquired by the investor consists of 50% of the indirect membership interests in:

• White Mesa Wind, an approximately 501-MW wind generation facility in Texas.
• Irish Creek Wind, an approximately 301-MW wind generation facility in Kansas.
• Hubbard Wind, an approximately 300-MW wind generation facility in Texas.
• Cool Springs Solar, an approximately 213-MW solar generation and 40-MW solar storage facility in Georgia.
• Little Blue Wind, an approximately 251-MW wind generation facility in Nebraska.
• Dodge Flat Solar, an approximately 200-MW solar generation and 50-MW solar storage facility in Nevada.
• Elora Solar, an approximately 150-MW solar generation facility in Tennessee.
• Quitman II Solar, an approximately 150-MW solar generation facility in Georgia.
• Fish Springs Ranch Solar, an approximately 100-MW solar generation and 25-MW solar storage facility in Nevada.
• Minco Wind Energy III, an approximately 107-MW wind generation facility in Oklahoma.
• Ensign Wind Energy, an approximately 99-MW wind generation facility in Kansas.
• Borderlands Wind, an approximately 99-MW wind generation facility in New Mexico.
• Quinebaug Solar, an approximately 49-MW solar generation facility in Connecticut.

NextEra Energy expects to sell the interests in the assets for a total consideration of approximately $849 million, subject to working capital and other adjustments, plus the investor’s share of the portfolio’s total tax equity financings, which is estimated to be approximately $866 million at the time of closing.

NextEra Energy expects to close the transaction later this year or in early 2022, subject to customary closing conditions and receipt of certain regulatory approvals.

NextEra Energy, Inc.

NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns Florida Power & Light Company, which is the largest vertically integrated rate-regulated electric utility in the United States as measured by retail electricity produced and sold, and serves more than 5.6 million customer accounts, supporting more than 11 million residents across Florida with clean, reliable and affordable electricity.

NextEra Energy also owns a competitive clean energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from seven commercial nuclear power units in Florida, New Hampshire and Wisconsin.

A Fortune 200 company, NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity. NextEra Energy is ranked No. 1 in the electric and gas utilities industry on Fortune’s 2021 list of “World’s Most Admired Companies,” recognized on Fortune’s 2021 list of companies that “Change the World” and received the S&P Global Platts 2020 Energy Transition Award for leadership in environmental, social and governance.