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NRG Energy to sell certain US power assets for $2.8bn

EBR Staff Writer Published 08 February 2018

US-based NRG Energy has signed multiple agreements to sell some of its power generation assets for a total sum of $2.8bn, as part of its efforts to reduce its debt.

The transactions follow NRG Energy’s announcement of its plans in July 2017 to sell assets worth $4bn to bring down its debt.

In a deal with Global Infrastructure Partners (GIP), NRG Energy has agreed to sell its integrated US renewable energy platform for $1.375bn to the former’s third equity fund, Global Infrastructure Partners III.

As per the terms of the deal, GIP will be buying NRG’s renewable energy operations and maintenance (O&M) and development businesses along with its 46% stake in NRG Yield (NYLD).

NYLD owns a range of contracted renewable and conventional generation and thermal infrastructure assets in the US.

On the other hand, NRG’s renewable O&M platform, which will also be acquired by GIP, operates 2.4GW of renewable power generation across 17 US states.

The renewable development platform of NRG to be acquired by GIP has a total project pipeline of more than 6.4GW of power generation opportunities across the US.

GIP chairman and managing partner Adebayo Ogunlesi said: “We view each of the three acquired businesses – the NYLD 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.”

Separately, NRG has agreed to sell its stakes in the 527MW Carlsbad Energy Center and 154MW Buckthorn Solar to NRG Yield for $407m.

The third deal has NRG agreeing to sell its South Central business to Cleco for $1bn.

The South Central business of NRG owns and operates a portfolio of 3.5GW of power generation facilities. Included in it are the 225MW Bayou Cove, 430MW Big Cajun-I, 1.46GW MW Big Cajun-II, 1.26GW Cottonwood and 176MW Sterlington power plants.

NRG president and CEO Mauricio Gutierrez said: “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.

“These sale processes were rigorous and highly competitive.”

Image: NRG’s headquarters building in Princeton, New Jersey. Photo: courtesy of NRG Energy, Inc.