SunEdison Pulls Out Of Deal To Acquire Stake In Brazil’s Renova Energia
SunEdison has announced another significant decision to re-address its balance sheet.
SunEdison and its yieldco TerraForm Global have announced that they will not proceed with the plan to acquire a stake in Renova Energia, a renewable energy developer in Brazil. SunEdison had announced that it would purchase a 15.87% stake in Brazil’s second largest clean energy project developer, Renova Energia, for a sum of $250 million.
TerraForm Global had earlier planned to acquire operational assets from Renova Energia. According to media reports, TerraForm will go ahead with the acquisition of some hydro power and wind energy assets. Renova has an operational power capacity of about 800 MW, with about 1.7 GW capacity under various stages of development.
In December last year, SunEdison and Renova formed a joint venture to develop 1 GW of solar power projects in Brazil. SunEdison agreed to supply solar PV modules and trackers for four projects worth 107 MW. The projects were secured under the first renewable energy projects auction in Brazil. It is not clear if the companies will go ahead with this plan to collaborate on the developer of solar power projects.
Renova’s parent company, Light SA, stated in a regulatory filing that SunEdison decided not to go ahead with the deal due to “adverse market conditions.”
Earlier this year, several Brazilian media reports had also stated that SunEdison was planning to set up a solar modules manufacturing unit in collaboration with Renova Energia. The latest media reports make no mention about the fate of this partnership.
SunEdison announced last month the sale of 425 MW worth of solar power assets in India to TerraForm Global for $231 million. The proceeds from the sales were used by SunEdison to pay-off some debt on its balance sheet.
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