NextEra Energy to raise $1.5 bn for new projects

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Utility firm NextEra Energy announced plans to raise $1.5 billion through equity unit sales, aimed at funding new energy and power projects.

This marks the second fundraising initiative by NextEra this year, driven by an anticipated increase in energy demand, especially from artificial intelligence data centers.

NextEra, which operates the world’s largest renewable energy business and a major U.S. utility, reported a third-quarter project backlog of 24 gigawatts (GW) in its renewables division.

Each unit will have a $50 value, offering buyers the option to purchase common stock in three years at a premium of up to 25 percent over the Oct. 28 closing price. J.P. Morgan, Mizuho and Goldman Sachs are the buyers.

The units also include a 5 percent beneficial ownership interest in a NextEra Energy Capital Holdings debt, maturing on Nov. 1, 2029.

In the third-quarter of 2024, NextEra Energy Resources added approximately 3 gigawatts of new renewables and storage projects to its backlog. NextEra Energy Resources’ backlog totals over 24 GW after taking into account roughly 1 GW of new projects placed into service since the second-quarter 2024.

Headquartered in Juno Beach, Florida. NextEra Energy also announced incremental framework agreements with two Fortune 50 customers for the potential development of renewables and storage projects, totaling up to 10.5 gigawatts between now and 2030.

NextEra Energy-owned Florida Power & Light (FPL)’s capital expenditures were approximately $2 billion for the third-quarter of 2024. Full-year capital investments are expected to be between $8 billion and $8.8 billion.

Baburajan Kizhakedath

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