NextEra Unit Selling Canadian Wind & Solar Assets in $1.27B Deal

NextEra will continue to operate the wind and solar plants under a 10-year services agreement with the buyer, Canada Pension Plan Investment Board (CPPIB).

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The clean energy unit of NextEra Energy is selling its renewables portfolio in Canada to that nation’s pension fund investment wing, the Florida-based company announced Monday.

NextEra Energy Partners LP will divest of six fully contracted wind and solar assets in Ontario for about $582.3 million. The deal also includes assumption of $689 million in existing debt on the projects.

NextEra will continue to operate the wind and solar plants under a 10-year services agreement with the buyer, Canada Pension Plan Investment Board (CPPIB).

The sale is part of NextEra’s plan to re-allocate capital back to U.S. assets and benefit from the lower corporate tax rate enacted late last year.

"The sale of these assets, at a very attractive 10-year average CAFD yield of 6.6 percent, including the present value of the O&M origination fee, highlights the underlying strength of the partnership's renewable portfolio,” NextEra Energy CEO Jim Robo said in a statement. “We expect to accretively redeploy the proceeds from this transaction to acquire higher-yielding U.S. assets from either third parties or NextEra Energy Resources."

Located in Ontario, the portfolio has a combined total generating capacity of approximately 396 megawatts (MW) and consists of:

  • Bluewater, a 59.9-MW wind generating facility;
  • Conestogo, a 22.9-MW wind generating facility;
  • Jericho, a 149-MW wind generating facility;
  • Summerhaven, a 124.4-MW wind generating facility;
  • Moore, a 20-MW solar energy generating facility; and
  • Sombra, a 20-MW solar energy generating facility.

NextEra Energy Partners expects the sale to close during the second quarter of 2018. The transaction is subject to receipt of regulatory approvals and satisfaction of customary closing conditions.

Another unit of the company, NextEra Energy Resources, acquired the Oklahoma portion of the proposed Plains & Eastern Clean Line transmission project for an undisclosed sum in late 2017. The Energy Resources unit has close to 28 MW in wind and solar throughout the U.S. and reported it plans to grow that portfolio to 40 GW by 2020.

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