SunEdison buys wind energy in the form of a $2.4 billion First Wind acquisition


SunEdison buys wind energy in the form of a $2.4 billion First Wind acquisition

SunEdison purchases wind energy

 
SunEdison has just completed its purchase of First Wind, a wind energy developer based in the US, which makes them the largest renewable energy development company in the world. The deal was really made by their subsidiary company, TerraForm Power, which was formed earlier this year to own and operate power plants.
 
SunEdison’s CEO and President, Ahmad Chatila said:
 
“The acquisition of First Wind transforms both SunEdison and TerraForm Power into diversified renewable energy companies and will make SunEdison the leading renewable power plant developer in the world,”
 
“By bringing together First Wind’s proven development and operational capabilities and SunEdison’s global corporate infrastructure and renewable energy development and finance experience, we will be well-positioned to capitalize on the significant growth opportunities in the global wind power markets and drive returns to shareholders of both SunEdison and TerraForm Power.”
 
First Wind is comprised of a current operating capacity of 521MW with an additional 1.6GW in the pipeline and opportunities of 6.4GW of wind energy for the future. If the production tax credits and incentives change considerably over time, the value of the investment made by TerraForm does too. However, the assessments made on First Wind’s portfolio were very positive.
 
An analyst at Bloomberg, Daniel Shurey said:
 
“I think this deal puts TerraForm in quite an advantageous position in terms of future capacity additions,”
 
“We’re estimating this would give TerraForm a 185% growth potential relative to its existing fleet. It is pretty big, pretty significant. Growth potential is one of the most important defining aspects of a yieldco.”
 
It is encouraging to see many large organizations investing in wind energy all over the world. Wind power has become a very profitable industry for investors, especially those interested in diversifying their energy portfolios, and looking for more long-term investment opportunities.
 

Posted By Sally on December 11, 2014 | 0 Comment

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