NRG Yield seeks $300m warchest

NRG Yield – the “yieldco” launched onto the New York Stock Exchange last summer by NRG Energy – intends to raise $300m in the bond markets to buy more power plants, including renewables.

The bonds – which will be convertible into cash, shares or both – will be used to acquire generation assets from both NRG Energy and other parties, NRG Yield says.

New Jersey-based NRG Yield, which raised more than $400m in its IPO, intends to buy a number of projects from NRG Energy this year – including several utility-scale PV projects and a fast-start natural-gas plant in California.

NRG Yield will also acquire the remaining stakes in the 250MW SunPower-developed California Valley Solar Ranch mega-PV plant that it does not already own.

The launch of NRG Yield has been widely hailed as a success, and is seen as giving rise to similar investment vehicles for both utility-scale and distributed renewables in the future.

The company currently owns more than 400MW of renewables capacity in the US, roughly three-quarters of it solar, in addition to the 101MW South Trent wind farm in Texas.