SunEdison announced that Terraform has acquired 21 U.S. distributed generation (DG) solar power plants comprising 26 MW from SunEdison for $47 million.
The portfolio has 21 power plants located in seven U.S states. Counterparties include municipalities, schools and businesses. These assets are expected to increase annual CAFD by approximately $5 million on an unlevered basis, SunEdison said.
TerraForm has interest in distributed generation projects as they yield attractive returns. DG projects are win-win for customers, asset owners and investors, say TerraForm officials.
“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,” Domenech added.
With this partnership, SunEdison has exceeded its goals for the projected 2014 drop downs, according to Brian Wuebbels, chief financial officer at SunEdison.
“The sale of these assets generates immediate value for SunEdison by generating cash, and recurring value through SunEdison’s ownership of TerraForm,” Wuebbels added.
Rajani Baburajan