Canada Pension Plan Investment Board (CPPIB) is investing up to C$2.25bn (€1.47bn) for a stake in a portfolio of wind and solar assets in North America and Europe owned by energy infrastructure firm Enbridge.

Enbridge has agreed with CPPIB to sell a 49% interest in select North American onshore renewable power assets, as well as 49% of Enbridge’s interests in two German offshore wind projects through a newly created joint venture with CPPIB, for around C$1.75bn.

The assets include 14 long-term fully contracted operating wind and solar assets in four Canadian markets and two operating assets in the US, with a combined installed capacity of 1.3GW.

As part of the deal, CPPIB will fund its 49% pro-rata share of the remaining C$0.5bn construction capital required to complete the Hohe See projects, offshore Germany, which are scheduled to come into service early 2020.

Enbridge and its affiliates will continue to manage, operate and provide administrative services to the North American and Hohe See projects.

Bruce Hogg, the managing director and head of power and renewables at CPPIB, said: “Through this investment, we are able to gain immediate exposure to a high-quality portfolio of wind and solar assets across diversified energy markets in North America and Europe, further advancing our global power and renewables strategy.”

Al Monaco, Enbridge’s president and CEO, said: “The monetization of $1.75bn of renewable assets through our newly formed joint venture with CPPIB is an important step in achieving the objective we set when we rolled out our three-year plan and strategic priorities in December.

“This deal makes a significant contribution to our $3bn asset sales target for the year and will also eliminate $500m of equity capital requirement that we had previously included in our funding plan. This transaction, in addition to our other funding actions taken since April, accelerates funding for our secured capital program and gives us increased financial flexibility.”

Also today, CPPIB and Enbridge have entered into an agreement whereby the two parties will form a 50-50 joint venture to pursue future European offshore wind projects.

These projects may be in the early development, late development, construction or operational phase, the companies said.

“Since December 2017, CPPIB has committed to wind and solar investments in Brazil, India, Canada, and now the US and Germany, Hogg said.

“Through the joint venture, we will have the opportunity to grow our renewables portfolio across the European offshore wind market.”