NextEra Energy Partners LP, a company that acquires, manages and owns contracted clean energy projects, has entered into a definitive agreement with Brookfield Renewable, a global owner and operator of renewable power assets, to acquire a 391 MW portfolio of four operating wind assets located in California and New Hampshire.
“This transaction demonstrates NextEra Energy Partners’ continued ability to execute its long-term growth plan,” says Jim Robo, chairman and CEO of NextEra Energy Partners. “This acquisition of approximately 400 MW of long-term contracted wind projects with high-credit-quality customers further enhances the diversity of the partnership’s existing portfolio.”
Almost all of the portfolio’s capacity is contracted with investment-grade counterparties and a cash available for distribution (CAFD)-weighted remaining contract life of approximately 13 years at the time of closing. The assets are located in markets with significant long-term renewables demand, supporting potential re-contracting or repowering opportunities after the initial contract terms. The assets included are:
- Alta Wind VIII (150 MW) in California
- Windstar, (120 MW) in California
- Coram, (22 MW) in California
- Granite, (99 MW) in New Hampshire
NextEra Energy Partners expects to acquire the unlevered portfolio for a base purchase price of $733 million, subject to closing adjustments. NextEra Energy Partners plans to fund the transaction with a combination of undrawn funds remaining from the 2020 convertible equity portfolio financing and existing debt capacity. The acquired assets are expected to contribute adjusted EBITDA and CAFD of approximately $63 million to $70 million, each on a five-year average run-rate basis, beginning Dec. 31.
The transaction is subject to approval from the Federal Energy Regulatory Commission and New Hampshire Site Evaluation Committee, as well as expiration or termination of the waiting period under the Hart-Scott-Rodino Act. NextEra Energy Partners expects to complete the acquisition in the third quarter, subject to customary closing conditions and the receipt of regulatory approvals.
Photo: Jim Robo