SunEdison (NYSE: SUNE) and Gamesa have announced the signing of a Memorandum of Understanding that will see up to 1 gigawatt of wind farms developed around the world by 2018.
In what will be a 50/50 ownership venture, Gamesa will supply wind turbines, operations and maintenance, plus possibly engineering, procurement, and construction (EPC) services. Ownership will be shared during development and SunEdison will acquire the projects once they are completed. SunEdison will then place the plants on the call rights list of its yieldco, TerraForm Power.
SunEdison says it will also purchase additional wind turbines from Gamesa, the number of which will be determined by development volume targets met.
“By partnering with Gamesa, one of the world’s leading wind technology and development companies, we’re particularly well positioned to capture the opportunity in India and Mexico, two regions where we already have a strong solar presence,” said Paul Gaynor, SunEdison executive vice president of the Americas and EMEA.
Gamesa says the partnership falls under its new Technology Development Programme; part of its 2015 – 2017 Business Plan. Under the Plan, the company projects 3,500-3,800 MW in 2017. It expects sales this year to be close to 3,100 MW.
“The combination of both companies’ strengths would also unlock synergies and maximise project returns,” said Xabier Etxeberria, Gamesa’s chief executive officer.
A definitive agreement between the two companies is expected to be signed by the end this year.
Gamesa knows a thing or two about wind power. More than 31,200 MW of its turbines have been installed in 51 countries since it began production in 1994. Gamesa has also developed a number of wind farms itself – more than 6,400 MW globally.
It’s been another huge week for SunEdison; one that has seen it further confirm its standing as the world’s largest renewable energy developer.
Yesterday we reported the company had commenced construction of the 185MW Bingham Wind project in Maine, USA. On Wednesday the company inaugurated its 50MW Dammakhedi solar farm in the Indian state of Madhya Pradesh. Earlier in the week, SunEdison announced completion of the acquisition of Atlantic Power’s 521-megawatt portfolio of operating wind farms.
