NextEra Energy sells a stake in a renewable energy portfolio for $849 million

A unit of NextEra Energy Resources agreed to sell a 50% non-controlling interest in a 2,520 MW portfolio of long-term contracted renewables assets to the Ontario Teachers’ Pension Plan Board for $849 million.

The remaining 50% interest will be sold by NextEra Energy Resources to NextEra Energy Partners for almost $850 million in a deal that was announced in October. In conjunction with the earlier acquisition, NextEra Energy Partners entered into a roughly $824 million convertible equity portfolio financing deal with Apollo Global Management.

Sale proceeds are expected to be plowed into new solar, battery storage, and wind projects, including NextEra Energy Resources’ more than 18,000 MW renewables and storage backlog.

Over the portfolio assets’ operating lives, NextEra Energy Resources expects to receive ongoing annual fee income of $16 million in year one and escalating thereafter for operations, maintenance, and management services.

The portfolio includes the following solar energy assets:

Cool Springs Solar, a 213 MW solar generation and 40 MW solar storage facility in Georgia.
Dodge Flat Solar, a 200 MW solar generation and 50 MW solar storage facility in Nevada.
Elora Solar, a 150 MW solar generation facility in Tennessee.
Quitman II Solar, a 150 MW solar generation facility in Georgia.
Fish Springs Ranch Solar, a 100 MW solar generation and 25 MW solar storage facility in Nevada.
Quinebaug Solar, a 49 MW solar generation facility in Connecticut.

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