Apollo has stated that funds managed by its affiliates, the Apollo Funds, have agreed to invest $824 million in a 2.5 GW renewable energy generation portfolio with NextEra Energy Partners, LP under a convertible equity portfolio financing agreement. The Apollo Funds agreed to make the investment as part of NextEra Energy Resources, LLC, a subsidiary of NextEra Energy, Inc., selling 50 per cent of the portfolio to NextEra Energy Partners.
The portfolio comprises 13 utility-scale wind and solar projects, three of which feature battery storage that is spread throughout the US electricity markets and are expected to be operational at the time of funding. Long-term power purchase agreements with diversified, investment-grade counterparties are in place for the assets. NextEra will manage the portfolio’s assets and offer operations and maintenance services.
According to a company statement, Apollo Funds has formed a joint venture with Johnson Controls to provide sustainability and energy efficiency services; invested in US Wind, an offshore wind developer; invested in Stagecoach Royalty, a renewable energy land royalties platform, as well as various other deals. NextEra Energy Partners is a growth-oriented limited partnership formed by NextEra Energy and the former acquires, manages and owns contracted clean energy projects with stable, long-term cash flows. It is headquartered in Juno Beach, Florida.
REGlobal’s Views: The recent Renewable Energy Country Attractiveness Index ranked United States number one in its rankings. Thus, not only large companies like NextEra Energy but also investors Apollo Funds are expanding their asset bases and investments in the US market.
