NextEra Energy Partners LP’s investments in renewable energy took a nearly billion-dollar leap Friday. The Juno Beach-based subsidiary of NextEra Energy revealed a $824 million agreement to acquire 50% ownership in 13 wind and solar energy sites across Kansas, Texas, Nebraska, Tennessee, Georgia, Oklahoma, New Mexico and Connecticut.
The site in Oklahoma is Minco Wind Energy III, a nearly 107-megawatt wind farm located near Minco in Grady County. The farm, located 9-16 miles northwest of Minco was commissioned in 2012 and consists of 63 wind turbines.
In conjunction with the acquisition, NextEra Energy Partners has also entered into an approximately $824 million convertible equity portfolio financing with Apollo Global Management (Apollo).
“The transactions announced today support NextEra Energy Partners’ continued ability to execute on its long-term growth plan and access attractive low-cost sources of capital,” said Jim Robo, chairman and chief executive officer. “The acquisition of the high-quality, long-term contracted renewable energy assets extends the partnership’s geographic footprint into three new states and expands its ownership of battery storage assets, which would total nearly 90 megawatts at close.”
The contracted renewables portfolio of wind, solar and solar-plus-storage assets has a strong and diverse mix of investment-grade counterparties and cash available for distribution (CAFD)- weighted remaining contract life of approximately 19 years. The portfolio to be acquired by NextEra Energy Partners consists of 50% of the indirect membership interests in:
- White Mesa Wind, an approximately 501-MW wind generation facility in Texas.
- Irish Creek Wind, an approximately 301-MW wind generation facility in Kansas.
- Hubbard Wind, an approximately 300-MW wind generation facility in Texas.
- Cool Springs Solar, an approximately 213-MW solar generation and 40-MW solar storage facility in Georgia.
- Little Blue Wind, an approximately 251-MW wind generation facility in Nebraska.
- Dodge Flat Solar, an approximately 200-MW solar generation and 50-MW solar storage facility in Nevada.
- Elora Solar, an approximately 150-MW solar generation facility in Tennessee.
- Quitman II Solar, an approximately 150-MW solar generation facility in Georgia.
- Fish Springs Ranch Solar, an approximately 100-MW solar generation and 25-MW solar storage facility in Nevada.
- Minco Wind Energy III, an approximately 107-MW wind generation facility in Oklahoma.
- Ensign Wind Energy, an approximately 99-MW wind generation facility in Kansas.
- Borderlands Wind, an approximately 99-MW wind generation facility in New Mexico.
- Quinebaug Solar, an approximately 49-MW solar generation facility in Connecticut.
NextEra Energy Partners expects to acquire the interests in the assets for a total consideration of approximately $849 million, subject to working capital and other adjustments, plus NextEra Energy Partners’ share of the portfolio’s total tax equity financings, which is estimated to be approximately $866 million at the time of closing.
The acquisition is expected to contribute adjusted EBITDA of approximately $184 million to $194 million and CAFD of approximately $58 million to $67 million, each on a five-year average annual run-rate basis, as of Dec. 31, 2022.
NextEra Energy Partners expects to close the acquisition later this year or in early 2022, subject to customary closing conditions and receipt of certain regulatory approvals.
Source: NextEra Energy Partners