SunEdison And Gamesa Form Joint Venture To Develop Up To 1 GW Of Wind

SunEdison, the world’s largest renewable energy developer, and Spanish wind energy giant, Gamesa, have announced the signing of a Memorandum of Understanding to develop up to 1 GW of wind power plants in a 50/50 joint venture.

The joint venture will aim to develop up to 1 GW of wind power plants by 2018, with the two companies each owning a 50% stake in the joint venture.

The terms of the agreement state that ownership of the project will be shared by the two companies through development, but upon initiation of construction and once operational SunEdison will take ownership and place them into its yieldco, TerraForm, to operate.

Gamesa, for its part, will supply the wind turbines and be responsible for subsequent operation and maintenance as part of long-term O&M agreements. It is also possible Gamesa will be responsible for engineering, procurement, and construction services for the individual projects.

“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, reinforcing its leadership as developer,” said Xabier Etxeberria, Gamesa’s Business CEO. “The combination of both companies’ strengths would also unlock synergies and maximise project returns.”

“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.”

“This strengthens our position in the global wind energy market,” said Carlos Domenech, President and Chief Executive Officer of TerraForm Power. “This joint venture reinforces our commitment to emerging markets.”