TerraForm Power has purchased 26MW of distributed generation (DG) projects from SunEdison for US$47 million.
The portfolio of 21 US-based plants are contracted to deliver power to a number of organisations including municipalities, schools and businesses across seven states.
The TerraForm yield co was spun out of SunEdison and floated on the NASDAQ in July 2014.
“This transaction furthers TerraForm's leadership in the DG market segment – which is one of the most profitable and fastest growing clean energy market segments,” said Carlos Domenech, president and CEO, TerraForm. “In addition, DG is a flow business that delivers consistent growth for our shareholders.”
Brian Wuebbels, chief financial officer at SunEdison, said the deal meant that the company had met its targeted project sales, or ‘drop downs’, to TerraForm for 2014.
“This accomplishment speaks to the strength of the relationship between TerraForm and SunEdison, and our ability to deliver on shareholder commitments by working together to leverage SunEdison's pipeline and expertise in developing, building and financing projects. The sale of these assets generates immediate value for SunEdison by generating cash, and recurring value through SunEdison's ownership of TerraForm.”