The Canada Pension Plan Investment Board is acquiring six Canadian wind and solar power projects from Florida-based NextEra Energy Partners for $741 million.

The projects includes two wind and four solar operations in Ontario with a total capacity of 369 megawatts. Under the transaction, affiliates of NextEra Energy will continue to manage the projects’ operations.

“This opportunity to acquire a sizeable portfolio of operating renewables projects provides immediate scale and exposure to a core sector for CPPIB’s broader North American and global power and renewables strategy,” said Bruce Hogg, managing director and head of power and renewables at the CPPIB, in a press release.

Read: CPPIB invests $272 million in Brazilian energy joint venture

“NextEra Energy Partners is an industry-leading renewables developer and operator. We look forward to working together with them to support continued strong performance from these projects.”

The investment is the pension fund’s third significant allocation to the global renewables sector, according to the press release.

“Since December 2017, CPPIB has committed to wind and solar investments in Brazil, India and now Canada,” said Hogg. “As power demand grows worldwide and with a focus on accelerating the energy transition, we will continue to seek opportunities to expand our power and renewables portfolio globally.”

The finalization of the transaction is set to close during the second quarter of 2018.

Read: CPPIB buys stake in Indian renewable energy company

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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