Ontario Teachers’ Pension Plan Board has announced an agreement with NextEra Energy Resources, LLC, a subsidiary of NextEra Energy, Inc. to acquire a 50 per cent interest in a portfolio of high-quality wind, solar and energy storage assets across the U.S.
This translates to an estimated 2,520-megawatt portfolio of 13 high-quality, long-term contracted renewable assets spread across U.S. power markets for a total investment for a 50% interest of approximately $1-trillion.
Ontario Teachers’ have also agreed to purchase 25 per cent interest in the $1-trillion convertible equity portfolio financing announced by NextEra in October.
“We are excited to make this significant investment and to grow our global portfolio of high-quality renewable energy assets,” Chris Ireland, the managing director of greenfield and renewables at Ontario Teachers’, said in a statement about the deal.
“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.”
Other sustainability efforts
Other investments from the greenfield and renewables team include Cubico Sustainable Investments, a global renewable energy company; Anbaric Development Partners, a builder of transmission solutions for renewables in the U.S. northeast’ and Equis Developments, a renewable developer in Asia-Pacific.
In 2021, Ontario Teachers’ committed to net-zero GHG in its portfolio by 2050 and in September set a goal to reduce portfolio carbon emissions intensity by 45 per cent by 2025 and 67 per cent by 2030, compared to a 2019 baseline.
Ontario Teachers’ is the administrator of Canada’s largest single-profession pension plan, with $227.7 billion in net assets as of June 30, 2021. Since 1990, it has invested and administered the pensions of Ontario’s 331,000 active and retired teachers.
Juno Beach, Fla.-based NextEra is the owner of Florida Power & Light Company, which is the largest vertically integrated rate-regulated electric utility in the United States as measured by retail electricity produced and sold.
NextEra also owns NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage.