NextEra Energy Partners, LP has announced that it has entered into an agreement with a subsidiary of its sponsor, NextEra Energy Resources, LLC, to acquire an indirect 24 percent interest in Desert Sunlight Investment Holdings, LLC.
The 550 MW Desert Sunlight Solar Farm is located on approximately 3,600 acres of land managed by the US Bureau of Land Management in Riverside County. The project is delivering significant environmental benefits, including displacing approximately 300,000 metric tons of carbon dioxide per year, equal to removing more than 60,000 cars from the road.
First Solar permitted, constructed and is now operating the plant, which uses over 8 million First Solar modules. The power generated is being provided to Pacific Gas & Electric Company and Southern California Edison both under long-term contracts.
Development on the Desert Sunlight Solar Farm began in 2008. Desert Sunlight received its right-of-way grant from the Bureau of Land Management in August 2011. Since breaking ground, the project employed an average of 440 construction workers who logged more than 3.6 million man-hours of work at the facility. In addition, more than 40 California businesses contributed to the project through services ranging from materials, equipment, utilities, labor, housing, and food and beverage.
When completed, the acquisition will expand NextEra Energy Partners' portfolio of contracted renewable energy projects to approximately 2,788 MW.
Jim Robo, chairman and chief executive officer, said:
"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. 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."