Updated: Major renewable energy firm, SunEdison has said it would change its business strategy in light of current financial market conditions.
In a business update conference call with financial analysts, SunEdison trimmed its anticipated project completions by 20% and confirmed that it would exit the UK market.
The shift in the UK was attributed to recent proposed cuts in the country’s feed-in tariff that could be as high as 87%.
Management revised its 2016 MW completions guidance to 3,300MW to 3,700MW, which would require around US$5.8 billion in financing.
However, the company would not be dropping any projects completed next year to its two yieldco’s, instead holding them in several of its ‘warehouse’ financial entities.
Management noted that some of its warehouse financial vehicles could hold the projects for five years or more before needing to sell to third parties or drop down into its yieldco’s.
CEO, Ahmad Chatila confirmed a Wall Street Journal story regarding the cancellation of its Latin American Power acquisition.
The deal done in May would have provided the company with 757MW of operating projects and 1,918MW of ROFO projects, of which 534MW are operating ROFO projects.
The company announced it was laying off 15% of its staff earlier this week.