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.
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.
Source: PV magazine. Reproduced with permission.