SunEdison and wind power provider Gamesa have signed a Memorandum of Understanding (MoU) to create a joint venture to develop up to 1GW of wind energy power plants globally by 2018. SunEdison and Gamesa will each own a 50% stake in the joint venture.
Under the terms of the agreement, Gamesa will supply the wind turbines and be responsible for operation and maintenance (O&M) of the wind power plants as part of long term O&M agreements. Gamesa may also provide EPC services for the projects. Ownership of the projects will be shared during development; upon construction SunEdison will acquire the projects from the joint venture. SunEdison will purchase additional wind turbines from Gamesa, based upon development volume targets achieved by the joint venture.
"This agreement will accelerate SunEdison's drive to respond to rapid growth in global wind markets," said Paul Gaynor, SunEdison executive vice president of the Americas and EMEA. "By partnering with Gamesa, one of the world's leading wind technology and development companies, we're particularly well positioned to capture the opportunity in India and Mexico, two regions where we already have a strong solar presence."
SunEdison intends to place the power plants acquired from the joint venture on the call rights list for TerraForm Power. It is expected that the definitive agreement, including the initial selection of projects for development from Gamesa's pipeline, will be signed by the end of 2015. The MoU and development plan hence help strengthen TerraForm Power’s deployment in global wind energy market.
"This alliance with SunEdison falls under the umbrella of our new Technology Development Programme, within the 2015-2017 Business Plan, and will enable Gamesa to make the most of its technical and management experience, further reinforcing our position as a leading developer," said Xabier Etxeberria, Gamesa's chief executive officer.