Terraform Power purchases 21 DG solar power plants in US from SunEdison

TerraForm Power has completed acquisition of 21 distributed generation (DG) solar power plants having combined capacity of 26MW in the US for $47m from SunEdison.

Located across seven states, all of facilities have long-term contracts for an average remaining life of 20 years.

TerraForm president and chief executive officer Carlos Domenech said: “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.”

SunEdison chief financial officer Brian Wuebbels said: “This accomplishment speaks to the strength of the relationship between TerraForm and SunEdison, and our ability to deliver on shareholder commitments by working together to leverage SunEdison’s pipeline and expertise in developing, building and financing projects.

“The sale of these assets generates immediate value for SunEdison by generating cash, and recurring value through SunEdison’s ownership of TerraForm.”

Barclays, Citi, and JPM Capital had offered $24m tax equity financing for the transaction, TerraForm said.

The acquisition will strengthen TerraForm’s annual cash available for distribution (CAFD) by around $5m on an unlevered basis.

Besides being a solar technology manufacturer, the US based SunEdison also offers 24/7 asset management, monitoring and reporting services globally through its Renewable Operation Center (ROC). The firm has operates across continents and has offices in North America, Europe, Latin America, Africa, India and Asia.