The Canada Pension Plan Investment Board has this week announced it has acquired a 396 megawatt (MW) wind and solar energy portfolio from NextEra Energy Partners for $582.3 million.
The acquisition, which was made official on Monday, will see Canada Pension Plan Investment Board (CPPIB) take ownership of a portfolio of four wind projects and two solar projects with a total capacity of 396 MW located in Ontario. NextEra Energy Partners will continue to act as the operator under a long-term agreement.
“This opportunity to acquire a sizeable portfolio of operating renewables projects provides immediate scale and exposure to a core sector for CPPIB’s broader North American and global power and renewables strategy,” said Bruce Hogg, Managing Director, Head of Power and Renewables, CPPIB. “NextEra Energy Partners is an industry-leading renewables developer and operator. We look forward to working together with them to support continued strong performance from these projects.”
The six projects are:
- Bluewater, a 59.9-MW wind generating facility
- Conestogo, a 22.9-MW wind generating facility
- Jericho, a 149-MW wind generating facility
- Summerhaven, a 124.4-MW wind generating facility
- Moore, a 20-MW solar energy generating facility
- Sombra, a 20-MW solar energy generating facility
“We are pleased to reach this agreement with CPPIB for the sale of our Canadian portfolio, which we expect will be accretive to NextEra Energy Partners’ long-term growth,” said Jim Robo, NextEra chairman and chief executive officer. “The sale of these assets, at a very attractive 10-year average CAFD yield of 6.6 percent, including the present value of the O&M origination fee, highlights the underlying strength of the partnership’s renewable portfolio.”
This is CPPIB’s third recent investment in the global renewable energy sector, and also comes at the same time as it announced an additional $247 million investment in ReNew Power Ventures to support its acquisition of Ostro Energy.