NextEra closes on IPO for yieldco

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NextEra Energy has closed on the initial public offering (IPO) for its yieldco vehicle, which will own interest in solar PV, concentrating solar power (CSP) and wind plants.

NextEra Energy Partners closed on the offering of 16.2 million shares at a price of US$25 per share. The underwriter's option of another 2.4 million shares was also fully subscribed, netting the company a total of US$443 million.

The yieldco subsidiary will use a portion of these proceeds to purchase shares in NextEra Energy Operating Partners, which holds its assets, and will also use proceeds for further acquisitions.

At the time of the IPO, NextEra Energy Partners' portfolio included two 20 MW solar PV plants in Ontario and the 250 MW Genesis CSP plant in California, as well as seven wind projects totaling 700 MW located across the United States and Canada.

NextEra is the latest company to create a yieldco vehicle to own solar assets, joining fellow utility NRG and solar developers SunEdison and Abengoa. Additionally, SunPower has created a “holdco” vehicle for the ownership of PV plants.

NextEra is a major owner of renewable energy projects, with a total of 643 MW of solar plants and 10.2 GW of wind. The company is also building 667 MW of solar PV plants which it plans to complete by the end of 2016, and its yieldco will have the right of first offer to acquire these and 1.8 GW of wind projects.

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