KKR invests in NextEra’s renewables portfolio

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Global investment firm KKR has signed off on a definitive agreement with NextEra Energy Partners (NEP) to acquire an equity interest in a newly-formed partnership with NEP, which currently holds a portfolio of ten utility scale wind and solar projects across the US with a combined generation capacity of 1.1GW.

KKR’s investment will be by way of an equity interest in a new structured partnership with NEP, in which NEP will hold certain rights to acquire KKR’s interest over time at predetermined return levels between 3.5 and seven years after the formation of the partnership. KKR’s share of partnership cash flows will increase to 99% in the event that such call options are not exercised within certain milestones.

In total, the US$900 million investment from KKR will be funded by a mix of new term loan financing and equity from its third Global Infrastructure Investors fund, which closed in September 2018 with US$7.4 billion in commitments.

Brandon Freiman, member of KKR and head of the firm’s infrastructure business in the Americas, said: “We’re excited to partner with NextEra, a world class renewable energy developer and operator, on this portfolio of high quality contracted wind and solar assets. This diverse portfolio of ten fully-operational renewable energy projects, all of which benefit from long-term contracts with investment grade customers, is an excellent addition to our portfolio.”

Read Next

July 26, 2021
US utility giant NextEra Energy added 1.84GW of renewables and energy storage projects to its backlog in Q2 2021, but its Energy Resources division reported a fiscal loss of US$315 million.
June 30, 2021
Renewables solutions provider Crossover Energy Partners is to oversee the development and operation of clean energy projects alongside investment firm KKR as part of a new collaboration between the companies announced today (30 June).
April 16, 2021
Three US utilities have hit out at proposed changes to Texas’s energy market that they say would lead to new costs for solar facilities and curb investment in the state’s renewables sector.
April 15, 2021
Asset manager Capital Dynamics will develop a 200MW solar farm for US utility Northern Indiana Public Service Company (NIPSCO) as it works towards its decarbonisation targets.
March 15, 2021
US utility Florida Power & Light (FPL) has filed a four-year rate plan that could see 894MW of solar PV systems added to the grid.
February 4, 2021
US renewables developer Borrego has been awarded a contract to develop a 110MWac utility-scale solar project in New York state.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK