TerraForm Global To Acquire 425 MW India Solar Power Assets From SunEdison
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
In what seems to be an internal rejig to boost its balance sheet, global renewable energy project developer SunEdison has announced the sale of 425 MW solar power projects to its yieldco TerraForm Global.
SunEdison confirmed, via a press release on 24 November that it will sell 425 MW worth of solar power assets to its global yieldco, TerraForm Global, for $231 million. A portion of the aggregate amount has already been paid by TerraForm Global on 20 November, which SunEdison has used for paying an outstanding loan.
The move is being seen by many as part of a strategy to boost the balance sheets of both SunEdison and TerraForm Global, with shares of both the companies have taken a massive beating over the course of this year. The importance of the transaction for TerraForm Global was explained by CEO Brian Wuebbels: “We are pleased to be able to add these accretive assets with 20 year contracted cash flows to TerraForm Global’s portfolio and believe they are critical to achieving our 2016 dividend guidance.”
The companies also stated that the transaction will add high-yielding solar power assets to TerraForm Global’s stockpile, replacing previously planned acquisitions of low-yielding assets.
For SunEdison, the deal offers an opportunity to pare its losses, having reported a loss of $263 million in the second quarter this year, and a net loss of $284 million in the recently concluded third quarter.
The press release did not mention anything about the Continuum Wind Energy, an Indian wind energy project developer, which SunEdison had announced plans to acquire earlier this year at an estimated price of $600 million. Several media outlets ran the story of SunEdison walking out of the deal.
SunEdison has not indicated any plans to reduce its exposure to the Indian renewable energy market where it has pledged to add 10 GW solar power and 5.2 GW wind energy capacity. Apart from the 425 MW sold to TerraForm, SunEdison has 800 MW solar power capacity under development in India. The company recently secured the right to develop 500 MW solar power capacity in Andhra Pradesh for a record low tariff of Rs 4.63/kWh (US¢7.12/kWh).
Chip in a few dollars a month to help support independent cleantech coverage that helps to accelerate the cleantech revolution!
Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Sign up for our daily newsletter for 15 new cleantech stories a day. Or sign up for our weekly one if daily is too frequent.
CleanTechnica uses affiliate links. See our policy here.
CleanTechnica's Comment Policy
