NextEra Energy increases its portfolio

NextEra Energy Partners announces the signing of an agreement to acquire solar and wind assets to expand its portfolio.

A favorable context

NextEra Energy Partners announces the signing of an $805 million agreement to acquire solar and wind assets. The goal is to expand its renewable energy portfolio in response to the growing demand for clean energy. The company believes that the promotion of alternative energy sources is gaining urgency this year.

Like other clean energy companies, NextEra Energy Partners is banking on the Inflation Reduction Act. This is a multi-billion dollar climate spending bill in the United States. The goal is to switch consumers to green energy and reduce carbon emissions.

NextEra Energy Partners will acquire a 49% interest in Emerald Breeze, a holding company. Emerald Breeze owns approximately 1.5GW of solar and wind generation assets. In addition, these projects are located in Texas, Oklahoma, New York and Nevada, among others.

A strategy

In addition, the company will take a separate full indirect interest in three wind generation facilities. These are located in Oklahoma, Iowa and Nebraska and total approximately 345MW. NextEra Energy Partners expects the agreements to close later this year.

The power generation facilities will begin operating by the end of the third quarter of next year. NextEra Energy expects the acquisitions to contribute €210 million to €230 million to its EBITDA in 2023. In addition, to finance the transaction, the company is carrying out a portfolio financing of convertible shares.

The transaction was done with the Ontario Teachers’ Pension Plan (OTPP) Board. Thus, OTPP will initially provide $645 million. The remaining $160 million will come in the third quarter of next year, once the facilities are operational.