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SunEdison, TerraForm Buy First Wind For $2.4B to Become Renewable Project Giant

Eric Wesoff's picture
Greentech Media

Prior to joining Greentech Media, Eric Wesoff founded Sage Marketing Partners in 2000 to provide sales and marketing-consulting services to venture-capital firms and their portfolio companies in...

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  • Nov 23, 2014 4:00 pm GMT

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renewable energy merger

SunEdison and its YieldCo Teraform just acquired wind developer First Wind for $2.4 billion. It means SunEdison is in the wind business and can now add wind projects to the solar project pipeline of its YieldCo, TerraForm. The purchase price was comprised of $1.9 billion in an upfront payment and a $510 million earn-out.

This makes SunEdison one of the world’s largest, if not the largest, renewable energy developers.

Jigar Shah, the founder of SunEdison tells GTM, “Access to low-cost capital is a huge strategic advantage today. First Wind needs access to this capital and this transaction shows that SunEdison has more credibility on YieldCos and low-cost capital than anyone.”

YieldCo TerraForm will be acquiring 521 megawatts of active wind and solar power plants. SunEdison will acquire more than “1.6 gigawatts of pipeline and backlog, adding to TerraForm Power’s call right project list.” These projects are expected to be operational in 2016 to 2017. As per the release, “Pro forma for the transaction, TerraForm Power raises its 2015 CAFD guidance to $214 million and 2015 dividend guidance to $1.30 per share.”

First Wind has more than 200 employees with wind and solar projects (mostly wind) across the U.S. The release notes that the acquisition adds 8 gigawatts of pipeline and backlog. SunEdison raised its 2015 installation guidance from 1.6 to 1.8 gigawatts to 2.1 to 2.3 gigawatts as a result of the acquisition.

Photo Credit: Renewable Energy Merger/shutterstock

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