US-based NextEra Energy Partners has agreed to acquire a portfolio of 11 wind and solar projects for a total consideration of $1.275bn.

To be acquired from a subsidiary of NextEra Energy Resources, the deal includes the assumption of nearly $930m in tax equity financing and $38m of non-recourse project debt.

The company noted that the portfolio collectively has the capacity to generate approximately 1,388MW of clean energy.

“This transaction replaces the Canadian portfolio that we divested earlier this year with higher-yielding assets in the US.”

The solar and wind projects are spread across eight different states in the US, including Indiana, Oklahoma, Colorado, Nebraska, California, Texas, Kansas, and Nevada.

Nextera Energy Partners chairman and CEO Jim Robo said: “The acquisition of these high-quality, contracted renewable energy assets demonstrates the continued execution of our plan to expand NextEra Energy Partners’ portfolio for the benefit of our unitholders.

“This transaction replaces the Canadian portfolio that we divested earlier this year with higher-yielding assets in the US that benefit from the lower effective corporate tax rate and longer tax shield.”

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Additionally, NextEra Energy Partners has revealed that it has entered into a convertible equity portfolio financing with a fund managed by BlackRock Global Energy & Power Infrastructure (Fund).

As per the terms of the financing, the Fund will pay $750m in exchange for an equity interest in the entity, which will own the portfolio acquired by NextEra Energy Partners.

NextEra Energy Partners expects to complete the acquisition in the fourth quarter of 2018, subject to customary closing conditions and the receipt of certain regulatory approvals.

The renewable energy company intends to initially finance the acquisition using $573m proceeds, which it received through the sale of its Canadian assets and capacity under an existing credit facility.