NextEra Energy, KKR and Partners to Acquire Interest in 1.1 GW Renewables Portfolio

NextEra Energy Resources will sell a 90% interest in a 1 GW renewables portfolio and 100% interest in a 100-MW solar-plus-storage project for approximately USD 1.3 billion in total proceeds

NextEra Energy has announced that a subsidiary of NextEra Energy Resources has entered into agreements to sell a 90 percent interest in a 1,000 megawatt (MW) portfolio of long-term contracted renewables assets (portfolio) and a 100 percent interest in a 100-MW solar-plus-storage project for approximately USD 1.3 billion in total proceeds, including tax equity, and subject to working capital and other adjustments. 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. The 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, NextEra Energy Resources is also expected to receive ongoing annual fee income of approximately USD 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,” said 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 USD 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.”

The portfolio includes:

• Blue Summit III Wind Energy Center, a project company that owns a 200.2-MW wind generation facility located in Texas.
• Ponderosa Wind Energy Center, a project company that owns a 200-MW wind generation facility located in Oklahoma.
• Harmony Florida Solar Energy Center, a project company that owns a 74.5-MW solar generation facility located in Florida.
• Taylor Creek Solar Energy Center, a project company that owns a 74.5-MW solar generation facility located in Florida.
• Saint Solar Energy Center, a project company that owns a 100-MW solar generation facility located in Arizona.
• Sanford Airport Solar Energy Center, a project company that owns a 49.4-MW solar generation facility located in Maine.
• Soldier Creek Wind Energy Center, a project company that owns a 300.4-MW wind generation facility in Kansas.

The investors are purchasing a 50 percent equity interest in the portfolio and NextEra Energy Partners is purchasing a 40 percent equity interest. NextEra Energy Partners’ acquisition will also include 100 percent of the membership interests in Wilmot Solar Energy Center, a project company that owns a 100-MW solar and 30-MW storage generation facility located in Arizona. NextEra Energy Resources will have a right of first offer on the investors’ 50 percent 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.