HOME > News

SunEdison and TerraForm Power Sign Definitive Agreement to Acquire First Wind

published: 2014-11-18 16:39

SunEdison and TerraForm Power, Inc., a global owner and operator of renewable energy power plants, have signed a definitive agreement to acquire First Wind, marking their entrance into wind power business.

With the purchase, SunEdison acquires the independent wind development and asset management company for US$2.4 billion. As a result, SunEdison raises its 2015 project installation guidance from 1.6-1.8 GW to 2.1-2.3 GW. The transaction also will accelerate the timing and enhance the visibility of SunEdison's receipt of incentive distribution rights (IDRs) from TerraForm Power, and increase the value of SunEdison's yieldco platform.

SunEdison will purchase over 1.6 GW of pipeline and backlog projects, which have been added to TerraForm Power's call right project list and are expected to be operational in 2016-2017. Included in the transaction is an additional 6.4 GW of project development opportunities. SunEdison expects to accelerate the rate of project development and realize significant synergies and growth opportunities by integrating First Wind's wind platform into its own global project development and finance platform.

TerraForm Power acquires 521 MW of contracted wind generation assets from First Wind and adds 1.6 GW to its list of call right projects scheduled for drop down in 2016-2017. The acquisition increases the generation capacity of TerraForm Power's operating portfolio by more than 50% and provides further geographic diversity in Maine, New York, Hawaii, Vermont and Massachusetts. In addition, subsequent to the acquisition, TerraForm Power's call right project list with SunEdison will double to 3.2 GW of solar and wind projects.

Ahmad Chatila, President and Chief Executive Officer of SunEdison, said, "By bringing together First Wind's proven development and operational capabilities and SunEdison's global corporate infrastructure and renewable energy development and finance experience, we will be well-positioned to capitalize on the significant growth opportunities in the global wind power markets and drive returns to shareholders of both SunEdison and TerraForm Power."

announcements add announcements     mail print
Share
Recommend