Nextera Energy to Sell its Canadian Renewable Portfolio

An affiliate of NextEra Energy Resources will continue to operate all of the facilities included in the transaction under a 10-year services agreement with CPPIB.

NextEra Energy Partners has signed a definitive pact with Canada Pension Plan Investment Board (CPPIB) for the sale of its wind and solar generation portfolio in Canada, for about USD 582.3 million.

The company said in a statement that, “NextEra Energy Partners, LP has entered into a definitive agreement with Canada Pension Plan Investment Board (CPPIB) for the sale of its portfolio of wind and solar generation assets located in Ontario, Canada, for a total consideration of approximately $582.3 million USD, including the net present value of the O&M origination fee, subject to customary working capital and other adjustments, plus the assumption by the purchaser of approximately $689 million USD in existing debt.”

An affiliate of NextEra Energy Resources will continue to operate all of the facilities included in the transaction under a 10-year services agreement with CPPIB.

“We are pleased to reach this agreement with CPPIB for the sale of our Canadian portfolio, which we expect will be accretive to NextEra Energy Partners’ long-term growth,” said Jim Robo, chairman and chief executive officer.

The transaction includes the sale of 6 fully contracted wind and solar assets, with an average contract life of approximately 16 years and 10-year average CAFD of USD 38.4 million. Located in Ontario, the portfolio has a combined total generating capacity of approximately 396 MW.

Meanwhile, the company expects that the sale likely to close during the second quarter of 2018. The transaction is subject to receipt of regulatory approvals and satisfaction of customary closing conditions.