NextEra Energy Partners LP (NYSE:NEP) said today it has agreed to acquire a 49% interest in a roughly 1.5-GW renewables bundle and all of the indirect membership interests in a 345-MW portfolio of operating wind farms from NextEra Energy Resources LLC.
As part of the first transaction, NextEra Energy Partners will gain a minority stake in an existing portfolio holding company called Emerald Breeze, which indirectly owns three wind projects and a solar-plus-storage development. On the other hand, the acquisition of the 100% indirect membership interests concerns a trio of wind parks. More details about each asset are provided in the table below.
NextEra Energy Partners will make these purchases for about USD 805 million (EUR 776.6m), plus the assumption of its share of the portfolio's estimated USD 1.5 billion in tax equity financing. Completion is scheduled to take place by the end of the year.
| Interest being purchased |
Project name |
Capacity (storage) |
Location |
COD |
| 49% |
Great Prairie Wind |
1,029 MW |
Texas and Oklahoma |
-- |
| 49% |
Appaloosa Run Wind |
172 MW |
Texas |
Dec 2022 |
| 49% |
Eight Point Wind |
111 MW |
New York |
Dec 2022 |
| 49% |
Yellow Pine Solar |
125 MW (65 MW) |
Nevada |
Q3 2023 |
| 100% |
Elk City Wind II |
107 MW |
Oklahoma |
Operating |
| 100% |
Sac County Wind |
80 MW |
Iowa |
Operating |
| 100% |
Sholes Wind |
160 MW |
Nebraska |
Operating |
The company’s plan is to create a new portfolio into which it would contribute the newly-acquired interests plus six existing wind assets – Alta Wind VIII, Brady Wind, Brady Wind II, Golden West Wind, Osborn Wind and Oliver Wind III.
In conjunction with those moves, NextEra Energy Partners has entered into an agreement for a 10-year convertible equity portfolio financing of USD 805 million with Ontario Teachers' Pension Plan Board.
John Ketchum, chairman and CEO of NextEra Energy Partners, said that this latest purchase will diversify the company's existing portfolio.
"Combining this acquisition with the recapitalization of six existing NextEra Energy Partners' assets through the convertible equity portfolio financing with a global infrastructure investor is expected to provide significant benefits for unitholders, including a low cash coupon and the ability to retain upside from the share price appreciation for up to 10 years,” Ketchum stated.
Once all projects in the portfolio start commercial operation, they are expected to contribute adjusted EBITDA of some USD 210 million-230 million and CAFD of USD 62 million-72 million, each on a five-year average annual run-rate basis, as of December 31, 2023.
(USD 1 = EUR 0.965)
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The Tuscola Bay II Wind Energy Center. Photo by: NextEra Energy Resources (www.nexteraenergyresources.com)
