Caption: Desert Sunlight Solar Farm
NRG Yield (NYSE:NYLD), through its subsidiary NRG Yield Operating LLC, entered into an agreement with GE Energy Financial Services (NYSE: GE) to acquire 25 percent interest in the Desert Sunlight Solar Farm in Riverside, Calif. for $285 million. The acquisition is subject to customary working capital adjustments, plus the assumption of $287.4 million of non-recourse project level debt.
The acquisition provides NRG Yield with a total ownership of 137.5-MW of operating solar capacity, and will place NRG Yield into a partnership with subsidiaries of NextEra Energy (NYSE: NEE) and Sumitomo Financial, who are the 50 percent and 25 percent owners of Desert Sunlight.
Power generated at the site is sold to Southern California Edison (250 MW) and Pacific Gas & Electric (300 MW) under long-term power purchase agreements.
First Solar (NYSE: FSLR) permitted, constructed and is now operating the plant — which entered operations in December 2014.
NRG Yield expects to close the transaction by June 30, 2015.