SunEdison, Inc. (NYSE: SUNE), and TerraForm Power, Inc. (NASDAQ: TERP), have announced completion of the acquisition of Atlantic Power’s 521-megawatt portfolio of operating wind farms.
The wind farms, located in Idaho and Oklahoma, are contracted under long term power purchase agreements (PPAs) with a weighted-average remaining life of approximately 18 years.
Along with the closing of the acquisition, SunEdison also announced it had formed its second warehouse facility called TerraForm Private Warehouse to hold the assets acquired from Atlantic Power for up to 7 years.
“This warehouse is integral to securing the future growth of the SunEdison-TerraForm platform, and provides repeatable and scalable funding,” said Brian Wuebbels, SunEdison CFO. ” Based on the success of our first and second warehouses, we anticipate adding additional warehouse vehicles to address future acquisition opportunities.”
SunEdison says its Services division will carry out operation and maintenance for three of the five wind farms involved.
TerraForm Power was originally established by SunEdison as a yieldco to own and operate solar farms built by the company. It has since expanded to incorporate wind farms and intends acquiring other clean power generation assets such as geothermal, hydroelectric and hybrid energy solutions as suitable opportunities present themselves.
In January this year, SunEdison and Terraform power completed their previously announced acquisition of First Wind, which included 500 MW of operating wind power plants and 21 MW of operating solar farms. With that acquisition, SunEdison became the largest renewable energy developer in the world.
In other TerraForm Power news, the company recently announced the acquisition of a 9 MW net ownership stake in solar farms from Duke Energy Renewables. Combined with a 23 MW net ownership stake in the same portfolio previously acquired from another company, TerraForm’s total ownership in the 48 solar power plants represents 32 MW.
The 48 facilities are located throughout Arizona, California, Massachusetts, New Jersey and Pennsylvania. All are contracted under long term power purchase agreements (solar PPA‘s) with a weighted average remaining life of 17 years.
“This acquisition demonstrates TerraForm Power’s continued leadership in the distributed generation segment and depth of utility relationships which continue to accelerate our growth trajectory,” said Alex Hernandez, the company’s Chief Financial Officer.
