Continuing to reinvest in renewable energy sources, NextEra Energy has agreed to sell 50 percent non-controlling interest in a 2,520 MW portfolio of long-term contracted renewables assets to the Ontario Teachers Pension Plan Board for $866M.

According to Tuesday’s announcement, the sale proceeds are expected to be redeployed into new wind, solar and battery storage growth opportunities. The funds will also be used to reinvest in NextEra Energy Resources, which delivers clean energy across North America through the construction of power projects, and its more than 18,000-MW renewables and storage backlog.

“This transaction is expected to generate significant value for NextEra Energy shareholders,” said Jim Robo, NextEra Energy chairman and CEO. “In addition to generating attractive ongoing fee income, the sale of 50% of the portfolio to NextEra Energy Partners and 50% to a high-quality partner like Ontario Teachers’ provides an opportunity to take advantage of the robust demand for high-quality, long-term contracted renewable energy assets and efficiently recycle nearly $3.4 billion in total capital that is expected to be redeployed into new renewables growth opportunities. The transactions highlight the value of NextEra Energy Resources’ best-in-class development platform and position us well to continue to capitalize on the robust renewables development environment that is driving the clean energy transformation reshaping our industry.”

NextEra Energy, a parent company to Florida Power & Light (FPL), highlighted in a press release the attractive capital recycling opportunity and the value of its renewables development platform which they say will provide significant value to NextEra Energy Resources. Over the operating life of the assets in the portfolio, NextEra Energy Resources is also set to receive ongoing annual fee income of approximately $16 million in year one and escalating thereafter for operations, maintenance and management services, and the transaction is expected to be accretive to earnings and generate an overall improvement in net present value for NextEra Energy shareholders.

“We are excited to make this significant investment and to grow our global portfolio of high-quality renewable energy assets,” said Chris Ireland, managing director, Greenfield and Renewables at Ontario Teachers’. “NextEra Energy is one of the world’s leading renewable energy companies and they share our focus on shaping a better future through the development of sustainable energy. This investment marks the beginning of what we expect will be a long-term partnership with NextEra Energy.”

NextEra Energy says they expect to close the transaction by early 2022.

The remaining 50 percent interest in the portfolio is under agreement to be sold by NextEra Energy Resources to NextEra Energy Partners, a limited partnership formed by NextEra Energy that acquires, manages and owns contracted clean energy projects.