SunEdison Inc. (NYSE: SUNE) and TerraForm Power Inc. (Nasdaq: TERP) said Jan. 8 that SunEdison has purchased new turbines that will enable it to develop up to 1.6 GW of incremental wind energy projects which qualify for the U.S. federal production tax credit (PTC).
TerraForm, a “yieldco” formed recently by SunEdison to acquire power facilities with secure power sales revenues, will purchase the projects from SunEdison once they achieve commercial operation.
On No. 17, 2014, SunEdison and TerraForm announced that they had signed a definitive agreement to acquire First Wind for $2.4bn. The purchase included over 1.6 GW of pipeline and backlog projects of which 1.4 GW were already PTC and or investment tax credit (ITC) qualified projects and an additional 6.4 GW of project development opportunities. The acquisition of First Wind is expected to close during the first quarter of 2015, subject to usual and customary conditions and regulatory approvals.
“The purchase of these PTC qualified wind turbines will further enhance our renewable energy development engine and increase its already impressive growth trajectory,” said Ahmad Chatila, President and Chief Executive Officer of SunEdison. “The acquisition of First Wind accelerates our ability to capitalize on the attractive growth opportunities in the global wind power markets. We planned for the most conservative case – that the PTC was not extended. However, when a two week extension of the PTC was created, we moved very quickly and secured the 2014 purchase of top-tier turbines. The ability to capitalize on this opportunity is a testament to our strategy and to the dynamic capabilities we have created by integrating First Wind’s development and operational capabilities with SunEdison’s global corporate infrastructure and renewable energy development and finance experience.”
“The addition of 1.6 GW of wind energy projects will cement TerraForm’s position as one of the leading renewable energy asset owners in the world,” said Carlos Domenech, President and Chief Executive Officer of TerraForm. “Our diversified growth strategy is delivering compelling results.”
Chatila added: “Following the closing of the First Wind acquisition we will have created an incredible platform for growth: a competitive source of development capital, the ability to convert development assets into operating assets rapidly and cost effectively, and a world class asset management company in TerraForm.”
SunEdison manufactures solar technology and develops, finances, installs and operates distributed solar power plants, delivering predictably priced electricity and services to its residential, commercial, government and utility customers. It has offices in North America, Europe, Latin America, Africa, India and Asia.
TerraForm is a renewable energy leader that is changing how energy is generated, distributed and owned. TerraForm creates value for its investors by owning and operating clean energy power plants.