SunEdison and TerraForm Power have partnered with JPM Capital Corporation to invest in solar energy development fund.
Under the agreement, SunEdison will invest $75 million while TerraForm will invest $100 million.
The financing will be used to purchase up to 60 megawatts of solar power projects that SunEdison will develop and construct in 2014 and 2015.
The new solar energy development fund will help strengthen the company’s position in solar energy market, said Carlos Domenech, president and chief executive officer of TerraForm Power.
“Our partnership with SunEdison together with JPM Capital’s investment commitment positions TerraForm Power to continue our expansion in this fast-growing, high-margin segment,” Domenech added.
“Putting together a fund with an investment commitment from JPM Capital, one of the world’s leading tax equity investors in renewable energy projects, is an important milestone not only for our company, but for the solar industry as a whole,” said Ryan Bennett, vice-president of project finance, North America at SunEdison.
The funding is one of the largest of its kind in 2014, and comes just after SunEdison closed a $117 million fund with Barclays and Citi for distributed solar generation projects in the US.
In another major development recently, SunEdison and TerraForm agreed to buy wind energy firm First Wind  for $2.4 billion.
Rajani Baburajan