NextEra Energy Partners has signed an agreement with a subsidiary of its sponsor NextEra Energy Resources to acquire an indirect 24% stake in Desert Sunlight Investment Holdings.
With the addition, the company's portfolio of contracted renewable energy projects will reach approximately 2,788MW.
NextEra Energy Partners' chairman and chief executive officer Jim Robo said: "This acquisition further demonstrates our ability to acquire assets at attractive yields, which will be accretive for our investors, as well as the continued strength of the pipeline of growth opportunities our sponsor NextEra Energy Resources provides.
"In addition, NextEra Energy Partners' continued ability to access the equity markets aligns with our previously communicated flexible and opportunistic approach to advance our growth strategy and deliver unitholder distributions consistent with the expectations we've outlined. NextEra Energy Partners, in our view, remains the premier YieldCo in the space."
Desert Sunlight Investment Holdings owns two project entities, which form the 550MW solar generation plant Desert Sunlight Solar Energy Center in Riverside County, California.
This centre comprises eight million panels, which can produce enough to supply 160,000 homes. The projects are also fully contracted under long-term power purchase agreements.
NextEra Energy Resources presently owns 50% of the projects and following closure of the deal, it will remain the managing member.