NextEra Energy Partners LP has entered into an agreement with a subsidiary of the yieldco’s sponsor, NextEra Energy Resources LLC, to acquire an indirect 24% interest in Desert Sunlight Investment Holdings LLC. When completed, the acquisition will expand NextEra Energy Partners’ portfolio of contracted renewable energy projects to approximately 2,788 MW.
Desert Sunlight Investment Holdings LLC owns two project entities that together make up the Desert Sunlight Solar Energy Center, a 550 MW solar generation plant located in Riverside County, Calif. The solar energy center consists of 8 million panels capable of generating enough power for 160,000 homes. The projects are fully contracted under long-term power purchase agreements. NextEra Energy Resources, which currently owns 50% of the projects, will remain the managing member upon completion of the transaction.
“This acquisition further demonstrates our ability to acquire assets at attractive yields that will be accretive for our investors, as well as the continued strength of the pipeline of growth opportunities that our sponsor, NextEra Energy Resources, provides,” said Jim Robo, chairman and CEO. “In addition, NextEra Energy Partners’ continued ability to access the equity markets aligns with our previously communicated flexible and opportunistic approach to advance our growth strategy and deliver unitholder distributions consistent with the expectations we’ve outlined. NextEra Energy Partners, in our view, remains the premier yieldco in the space.”
NextEra Energy Partners expects to complete the acquisition in the fourth quarter of 2016, subject to the satisfaction of customary closing conditions, for a purchase price of $218 million. The purchase price considers approximately $258 million of the existing non-recourse project debt and is subject to working capital adjustments. The partnership expects to fund the transaction through the net proceeds of an issuance of common units.