NRG Closes on up to 1,500 MW of Wind and Solar Assets
November 22, 2016
We’re proud to share that we’ve closed on our acquisition of all projects within NRG’s 1,500 MW SunEdison transaction.
The portfolio consists of more than 1,500 megawatts (MW) (AC) of utility-scale solar photovoltaic and wind projects that are either completed or in varying stages of development across the United States.
Under a separate agreement with SunEdison, NRG also previously reached closing of the acquisition of 29 MW (AC) of distributed generation and community solar projects that are under development across 26 sites in several states.
Together, the acquisitions leverage the capabilities of our cross-functional platform, which is uniquely positioned to implement the range of projects – from utility-scale solar and wind to commercial and community solar – with many in markets the NRG family already serves, including California, Texas and Massachusetts.
Our team is well positioned to bring these projects through implementation into operation and, importantly, to achieve capital replenishment through our strategic partnership with NRG Yield. This acquisition confirms our ongoing leadership in and commitment to renewable energy as well as the support for our partner NRG Yield.
This transaction will also enable NRG, as one of America’s leaders in renewable energy, to enter new markets for utility-scale solar projects, including Hawaii and Utah. Nearly 265 net MW (AC) of the portfolio is now online and operational, increasing the NRG and NRG Yield, Inc. operating renewables portfolio to nearly 4.7 GW across 26 states.
With the completion of the acquisition of the operating projects in this portfolio, more than 10% of our consolidated power generation capacity is attributable to renewable energy sources.
In addition, we have significantly expanded our development pipeline of renewable energy assets eligible for ultimate drop-down into NRG Yield.
Snapshot of SunEdison Acquisition
1,500 MW Utility-Scale Portfolio:
Under the 1,500 MW (AC) utility-scale transactions – previously approved by the United States Bankruptcy Court for the Southern District of New York – NRG has now acquired:
• Partnership interest in a 530 MW (AC) fully-constructed, fully-contracted portfolio of seven utility scale solar projects in Utah. A portion of NRG’s interest will be available for drop down to NRG Yield in 2016; (NRG 265 MW net ownership)
• Ownership of a 154 MW (AC) fully-contracted, partially constructed solar project in Texas;
• Ownership of 1,100 MW of solar and wind assets in various stages of development at locations across the U.S., including 111 (AC) MW of construction-ready assets in Hawaii.
The utility-scale agreement with SunEdison provides for total consideration of up to $183 million, comprised of an initial payment of $124 million and subsequent payment of $15 million upon the execution of designated power purchase agreements for the Hawaii construction-ready solar projects, and up to $44 million in future payments contingent on achieving other development and construction milestones.
29 MW Distributed Generation and Community Solar Portfolio:
Outside of SunEdison’s federal bankruptcy court process, NRG also has acquired a portfolio of in-construction and construction-ready solar projects in the following groups:
• 17 MW (AC) of mechanically complete projects across 21 sites for municipal and education counterparties in California, Florida, Massachusetts and Connecticut expected to commence operations in 2016 and early 2017;
• 12 MW (AC) of construction-ready projects across five sites in Massachusetts, contracted with public housing authority, commercial, municipal, and residential counterparties.