SunEdison, TerraForm Power wrap up buy of First Wind

SunEdison Inc. (NYSE: SUNE) and “yieldco” affiliate TerraForm Power Inc. (Nasdaq: TERP) announced Jan. 29 that they have completed their previously announced acquisition of First Wind Holdings LLC.

In the transaction, TerraForm Power purchased 500 MW of operating wind  plants and 21 MW of operating solar plants from First Wind. The portfolio has an average counterparty credit rating of A- and brings the weighted average remaining power purchase agreement (PPA) life to 16 years for the entire TerraForm fleet. The portfolio is expected to add $73m of cash available for distribution (CAFD) in 2015. TerraForm Power reiterates its 2015 guidance of $214m of CAFD and dividends of $1.30 per share.

The acquisition provides SunEdison with an additional 8 GW of development-stage projects, of which 1 GW consists of production tax credit (PTC)-eligible wind project pipeline and backlog, and 0.6 GW of solar project pipeline and backlog. Since the acquisition announcement, SunEdison has secured wind turbines that increase the number of PTC-eligible wind projects from 1 GW to 2.6 GW.

At the time of the acquisition announcement, SunEdison raised its 2015 installation guidance by 29% to 2.1 GW-2.3 GW, and raised its 2016 installation outlook to 2.8 MW-3.0 GW. The visibility provided by First Wind’s 8 GW of projects will continue to drive the growth of both SunEdison and TerraForm.

“With the acquisition of First Wind, SunEdison becomes the leading renewable energy developer in the world,” said Ahmad Chatila, President and Chief Executive Officer of SunEdison. “This acquisition enhances SunEdison’s global offering and adds a talented wind development and asset management team. By combining SunEdison’s leading solar development platform with First Wind’s platform, SunEdison is well positioned to drive significant growth in global renewable energy markets, and deliver immediate shareholder value.”

“This transformative transaction increases our scale and further establishes TerraForm Power’s leadership in renewable energy. It diversifies our portfolio to include contracted wind assets, increases our drop down inventory by 93% to 3.3 GW, and demonstrates our ability to acquire large high-quality, long-term, contracted portfolios from third parties,” said Carlos Domenech, President and Chief Executive Officer of TerraForm Power. “Backed by SunEdison and First Wind’s development and service capabilities, we are well positioned to execute on our growth trajectory while creating significant value for investors.”

SunEdison is the world’s largest renewable energy development company and is transforming the way energy is generated, distributed, and owned around the globe. Corporate headquarters are in the United States, with additional offices around the world. 

TerraForm Power is a renewable energy leader that is changing how energy is generated, distributed and owned. TerraForm Power creates value for its investors by owning and operating clean energy power plants.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.