SunEdison and TerraForm Power buy First Wind

Share

SunEdison and its yieldco subsidiary TerraForm Power have signed a definitive agreement to purchase First Wind. This will bring SunEdison into the wind development market, but also brings additional solar PV projects, as First Wind began developing PV in 2013.

The company says that this will double its total addressable market, providing 6.4 GW of project development opportunities, as well as increasing its backlog. As a result the company has raised its 2015 installation guidance from 1.6-1.8 GW to 2.1-2.3 GW.

Among the projects that SunEdison will acquire with the First Wind purchase are the Four Brothers PV projects in the state of Utah, representing 320 MW-AC. These were awarded power purchase agreements with a local utility under a federal law requiring the purchase of electricity from renewable energy projects if it is below a utility's “avoided cost”.

For TerraForm Power, the acquisition will supply 503 MW of operating wind plants and 18 MW of PV plants, increasing its portfolio to over 1.3 GW. The company will also gain 1.6 GW of call right projects, doubling its capacity to 3.2 GW.

Popular content

The total cost of the transaction will be $2.4 billion, including 1.9 billion in up-front costs and a $510 million earn-out. SunEdison and TerraForm Power have secured US$2.4 billion in bridge funding for the transaction, as well as $1.5 billion in non-recourse capital from six banks and an infrastructure lender to fund growth.

Following regulatory approvals, The transaction is expected to close in the first quarter of 2015.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Share

Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.