Canadian investor Ontario Teachers’ Pension Plan Board has signed an agreement to invest US$805 million in a convertible equity portfolio financing with NextEra Energy Partners to help it acquire a 2GW portfolio of solar, storage and wind assets across the US.
The deal came as part of a sale of assets from NextEra Energy Resources to NextEra Energy Partners, both subsidiaries of NextEra Energy. It’s expected to be closed by the end of 2022 or early in 2023.
The portfolio consists of nine operational solar, storage and wind assets and four which are newly constructed. The assets all have long-term power purchase agreements in place.
“We are pleased to build on our partnership with NextEra Energy Resources and NextEra Energy Partners, a world leader in renewable energy generation, and to make another significant investment in a portfolio of high-quality wind and solar energy assets,” said Chris Ireland, senior managing director, greenfield and renewables at Ontario Teachers’.
In November 2021, the two entities completed a direct interest and convertible equity portfolio financing agreement. This investment is being made by Ontario Teachers’ Greenfield and Renewables team, a part of its Infrastructure & Natural Resources department. The company said that its Greenfield and Renewables pro-rata investments total around 5.6GW.
In October, NextEra reported unexpectedly high Q3 revenue of US$1.7 billion despite the damage of hurricane Ian. In September the company brought a 485MW solar-plus-storage project online in California, and in the summer it announced its decarbonisation targets for 2045, including a massive 90GW of solar PV.