TerraForm Power has acquired 168 MW of distributed generation and utility-scale solar PV plants from parent group SunEdison.
Launched last year as a publicly listed holding company to own operating assets with a predictable cash flow, TerraForm currently holds more than 1.5 GW of solar and wind power plants.
TerraForms new assets, acquired during the first quarter of the year, include 11 utility-scale, ground-mounted plants in the United Kingdom comprising 153 MW and 15 MW of distributed generation plants in the United States. The power plants are part of TerraForms 3.4 GW "call right list," which gives the company the option to purchase SunEdison power plants once completed.
TerraForm, which did not disclose what it paid for the plants, expects the installations to generate a combined $17 million in cash available for distribution (CAFD) this year.
The plants' counterparties include affiliates of EDF Energy and Statkraft in the U.K. and municipalities, federal agencies, schools and commercial entities for the U.S. distributed generation portfolio. SunEdison has completed installation for all 168 MW in the portfolio.
TerraForm President and CEO Carlos Domenech described the U.S. distributed generation market as "one of the most profitable and fastest growing clean energy market segments."
TerraForm said it had used its existing balance sheet liquidity to fund the acquisition of the plants. The company has announced a 2015 guidance of $214 million of CAFD and dividends of $1.30 per share.
In related news, SunEdison and TerraForm said they had interconnected four solar farms in North Carolina totaling 26 MW.
TerraForm will sell the electricity generated by the installations to Duke Energy Progress via 15-year power purchase agreements.
SunEdison secured the financing for the systems with federal and state tax equity investors. SunEdison Services, which provides asset management, monitoring and reporting services, will handle operation and maintenance for the plants.
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: firstname.lastname@example.org.