SunEdison signs supply agreements to support 1.6GW wind power development

Solar power firm SunEdison has signed turbine supply contracts for supporting up to 1.6GW of incremental wind energy projects, which are developed under the US federal production tax credit (PTC).

Once operational, the projects will be acquired by TerraForm Power from SunEdison.

The two firms had signed a definitive agreement in November 2014 for acquiring First Wind in a $2.4bn deal, which is likely to be concluded by the initial quarter of 2015.

The purchase deal included over 1.6GW of pipeline and backlog projects, out of which 1.4 GW have already qualified under the PTC and/or ITC.

SunEdison president and chief executive officer Ahmad Chatila said: "The purchase of these PTC qualified wind turbines will further enhance our renewable energy development engine and increase its already impressive growth trajectory.

"The acquisition of First Wind accelerates our ability to capitalize on the attractive growth opportunities in the global wind power markets.

"We planned for the most conservative case – that the PTC was not extended. However, when a two week extension of the PTC was created, we moved very quickly and secured the 2014 purchase of top-tier turbines."

TerraForm president and chief executive officer Carlos Domenech said: "The addition of 1.6 GW of wind energy projects will cement TerraForm’s position as one of the leading renewable energy asset owners in the world."