NRG sells renewable energy businesses for $1.4B

NRG Energy is moving away from renewable energy, Kallanish Energy learns.

The company, with offices in New Jersey and Texas, is selling its renewable energy business for nearly $1.4 billion to a New York investment fund: Global Infrastructure Partners III.

The deal is for NRG’s 46% controlling stake in its NRG Yield spinoff, as well as for NRG’s other renewable energy operations, maintenance and development businesses.

NRG’s Yield has the largest project portfolio by installed capacity among U.S. power “yieldcos” and is the second-largest by enterprise value and market capitalization.

Its operating power plant capacity totals 5,100 megawatts and is diversified across wind, solar and natural gas technologies. The company also owns thermal infrastructure and electric generation.

NRG’s renewable O&M platforms operates 2,400 MW of renewable power generation in 17 states.

Its renewable development platform includes 630 MW of identified dropdown assets which are subject to a right of first refusal from Yield. It has more than 6,400 MW of renewable generation opportunities across the U.S. (as last disclosed publicly by NRG).

“We are excited to announce the acquisition of NRG’s world-class renewables business,” said Adebayo Ogunlesi, chairman and managing partner of GIP, in a statement.

“We view each of the three acquired businesses, the NTLD stake, the O&M business and the development business, as highly complementary and well positioned to capitalize on the increasing market demand for low-cost, clean energy,” he said.

In addition, GIP has agreed to provide financial backstop support for Yield’s agreed purchase of the 527 MW Carlsbad natural gas-fired project in California from NRG, the companies said in a statement.

The deal is expected to close in the second half of 2018.

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