The US power utility NextEra Energy Partners will divest its wind and solar power assets in Ontario (Canada) to the Canada Pension Plan Investment Board (CPPIB, the largest Canadian public pension fund) for a total consideration of US$582m. The transaction is subject to regulatory approvals and is expected to be closed during the second quarter of 2018.
NextEra's assets in Canada comprise 955 MW of wind power assets and 40 MW of solar capacity but only the ones located in Ontario are included in the deal. The transaction includes the sale of six fully contracted wind and solar assets, with a combined capacity of approximately 396 MW, namely 60 MW Bluewater wind park, 23 MW Conestogo wind park, 149 MW Jericho wind park, 124 MW Summerhaven wind park, 20 MW Moore solar park and 20 MW Sombra solar park.
The sale fits into NextEra's strategy, which plans to invest into its US assets and take advantage of the recent corporate tax rate cut (from 35% to 21% following the enactment of a new tax code in December 2017.
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