US utility NRG Energy has unveiled a three-year transformation plan that includes selling up to $4bn worth of assets, such as the company’s renewables investments.
NRG plans to sell between 50% and 100% of its interest in yieldco NRG Yield and its renewables platform.
The company said it is “well underway in a process to explore strategic alternatives for its interest in NRG Yield and the renewables platform”.
It said the “strategic alternatives span a variety of ownership structures and partnership types, including the potential partial or full monetization of the renewables platform and NRG’s interest in NRG Yield with a goal to optimize how NRG participates in renewables and to deconsolidate the associated debt”.
NRG Yield has a portfolio of solar and wind projects totalling almost 3GW, while NRG itself owns more 1.1GW of renewables assets.
NRG president and chief executive Mauricio Gutierrez said: “The transformation plan announced today demonstrates our commitment to simplify and strengthen the company to thrive through any market cycle.
“This plan is the result of a comprehensive review of our entire business by the board and management to simplify our business, right-size our portfolio and strengthen our balance sheet to create significant value for all our stakeholders.”
The plan also aims to remove $13bn of debt from the company’s balance sheet and provide $1.065bn in recurring cost and margin improvements.
Image: NRG
NRG mulls renewables options
Transformation plan includes aim to raise up to $4bn from selling assets
By EBS