Gas, Renewables, Solar, Wind

NRG Energy Selling NRG Yield, Other Assets for Nearly $3 Billion

By Editors of Power Engineering

NRG Energy announced a series of asset sales, including renewable energy subsidiary NRG Yield, for a combined $2.8 billion.

Global Infrastructure Partners has agreed to purchase NRG Yield and NRG’s renewable platform for $1.375 billion. The sale includes NRG’s renewable energy development and operations platforms and NRG’s renewable energy backlog, with the exception of four assets which secured separate agreements.

The deal with Global Infrastructure Partners is expected to close in the second half of the year.

The 527-MW Carlsbad Energy Center and the 154-MW Buckthorn Solar will be purchased by NRG Yield for $407 million. Both projects are still under development.

NRG and NRG Yield will also maintain a right of first offer agreement for NRG’s 102-MW ownership in Agua Caliente, while the 392-MW Ivanpah solar thermal plant will be removed as a right of first offer asset.

Additionally, Cleco Corporate Holdings will purchase NRG’s South Central portfolio for $1 billion. The 3.55 GW portfolio includes the 225 MW Bayou Cove, 430 MW Big Cajun-I, 1,461 MW Big Cajun-II, 1,263 MW Cottonwood and 176 MW Sterlington.

As part of the transaction, NRG will sell and leaseback the 1,263-MW cottonwood gas-fired combined cycle plant through May 2025. The transaction will also close in the second half of the year.

Today’s announcement represents a significant milestone in simplifying our value proposition, optimizing our portfolio, and strengthening our balance sheet to create significant shareholder value,” said Mauricio Gutierrez, President and Chief Executive Officer, NRG. “These sale processes were rigorous and highly competitive. I am pleased with the outcome and confident in our ability to work with our counterparties to bring these transactions to a swift close.”