3.6 C
London
Monday, November 29, 2021

TerraForm Power acquires 26 MW of distributed PV systems from SunEdison for USD 47 Million

Popular Articles

SunEdison, Inc. (Belmont, Calif., US) and TerraForm Power, Inc. (Bethesda, Maryland, US) on January 7th, 2015 announced that TerraForm has acquired 21 U.S. distributed generation (DG) solar photovoltaic (PV) power systems comprising 26 MW from SunEdison through a series of transactions valued at USD 47 million

21 PV arrays located in seven US states

The 21 PV arrays have long-term contracts with an average remaining life of 20 years. The PV portfolio has high quality counterparties including municipalities, schools and businesses and is geographically diverse, with plants located in seven US states. These assets are expected to increase annual Cash Available for Distribution (CAFD) by approximately USD 5 million on an unlevered basis.

TerraForm has funded the purchase of these call right projects with cash on hand, the companies note.

 Solar power provided directly to end users

These distributed generation drop downs advance TerraForm’s strategy of transforming how energy is generated, distributed and owned. DG projects are inherently “win-win” for customers, asset owners, and investors. By providing solar power directly to end users, customers save on energy, while TerraForm benefits in the form of attractive project returns, reads the press release.

“This transaction furthers TerraForm’s leadership in the DG market segment – which is one of the most profitable and fastest growing clean energy market segments,” said Carlos Domenech, President and Chief Executive Officer of TerraForm.

“In addition, DG is a flow business that delivers consistent growth for our shareholders.”

“We are pleased to announce that together with TerraForm, we have exceeded our goals for the projected 2014 drop downs,” said Brian Wuebbels, Chief Financial Officer at SunEdison.

“This accomplishment speaks to the strength of the relationship between TerraForm and SunEdison, and our ability to deliver on shareholder commitments by working together to leverage SunEdison’s pipeline and expertise in developing, building and financing projects. The sale of these assets generates immediate value for SunEdison by generating cash, and recurring value through SunEdison’s ownership of TerraForm.”

- Advertisement -

More articles

Latest articles

- Advertisement -