Project Funding Brief: NextEra to Sell 50% Interest in 2.5 GW Renewable Energy Portfolio in the United States

From: Mercom Capital Group

NextEra Energy, through its subsidiary NextEra Energy Resources, has Between concluded an agreement to sell a 50% non-controlling interest in a company of approximately 2,520 MW renewable energy portfolio under long-term contract to the Ontario Teachers’ Pension Plan Board. The remaining 50% stake in the portfolio is subject to a sale agreement to NextEra Energy Partners under a buy and sell agreement. NextEra Energy plans to sell the stakes in the assets for a total consideration of approximately $ 849 million, subject to working capital and other adjustments, plus the investor’s share of total portfolio tax fundings, which is estimated to be around $ 866 million at the time. closing.

Based in Canada, Westbridge Energy, a renewable energy company focused on the development of large-scale solar photovoltaic projects, has acquired a majority stake of 75% in Sunnynook Solar Power. Sunnynook is developing a 236 MW solar photovoltaic project and a 100 MW battery energy storage system (BESS) project in Sunnynook, Alberta, Canada. The project was granted control of the site under a long-term solar lease covering 940 acres. It is currently in Stage 1 of the Alberta Electric System Operator interconnection process, with environmental studies underway under guidelines from Alberta Environment and Parks.

CIT Group announcement that its electricity and energy business led the refinancing of a $ 69 million portfolio of solar installations owned and operated by Strata Clean Energy, an integrated provider of solar energy and storage services in North Carolina. The portfolio consists of 21 solar assets in operation across North Carolina, totaling 130 MW of generating capacity.

Singapore-based renewable energy company Sembcorp Industries, through its wholly owned subsidiary Sembcorp Energy, sign a transfer of equity agreement with the Chinese state-owned investment holding company, the Shanghai SDIC Xieli Development Equity Fund Partnership (Xieli Fund) of the State Development Investment Corporate Group (SDIC), to take over its 35% stake in SDIC New Energy for a equity counterpart of approximately RMB 1.5 billion (~ $ 0.23 billion). SDIC New Energy’s portfolio consists of 30 operational wind and solar photovoltaic assets with a total gross installed capacity of approximately 1.9 GW, located in seven provincial regions of China. SDIC Power, the listed electricity arm of SDIC, is the remaining 65% shareholder of SDIC New Energy.

CIT Group announcement that its electricity and energy activities served as the lead coordinating arranger on nearly $ 210 million in funding for a 260 MW Brazoria West solar project in Brazoria County, Texas. Construction is underway and commercial operations are scheduled for 2022. The project was developed by Savion, a subsidiary of Macquarie’s Green Investment Group, developer and owner of renewable projects. Immediately after closing, the project was sold and the debt was taken over by S&B US Energy, a subsidiary of Shikun & Binui, an Israeli infrastructure and real estate company. S&B US Energy will support development from closure to commercial operations.

Verbund, an electricity utility, has acquired the 147.6 MW Illora solar photovoltaic project in southern Spain by BayWa re The project is located in Pinos Puente, near Granada. Illora will produce around 260 GWh of green electricity per year. Construction on the project began in May 2021 and commissioning is scheduled for the first quarter of 2022.

Wells Fargo Renewable Energy & Environmental Finance Group announcement the closing of the tax equity financing of 300 MW of Arroyo Solar and a 150 MW Storage project in McKinley County, New Mexico, with DE Shaw Renewable Investments (DESRI). Sundt Construction is building the solar project, which will use Nextracker smart solar trackers.

Ecoenergy, an independent producer of large-scale renewable energy projects, has acquired an 87 MW solar project in Parau, in central Romania. Construction work on the project will begin in the first half of 2022. Vlasceanu, Nyerges and their partners have advised Ecoenergy on the transaction.

For reports and follow-ups on M&A financing and transactions in solar energy, energy storage, smart grids and efficiency, click here.

Read last week’s project funding brief.

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