TerraForm Buys 930 MW Wind Portfolio for $2B

TerraForm Power, Inc. (NASDAQ:TERP)’s which is a unit of SunEdison Inc. has signed a final agreement to obtain the net acquisition of 930 megawatt (MW) of wind power plants from the Invenergy Wind LLC, which is the major self-governing wind vendor in the United states within a deal of $2 billion. “It’s helped to proliferate renewable energy”.

The remaining 470 MW will be acquired by a new facility of warehouse, sponsored by SunEdison and third-party equity investors, with the assets reducing down to TerraForm in the future. A spinoff of SunEdison Inc.’s clean-power assets paved the way for the formation of TerraForm past year.

Invenergy will retain a 9.9% stake in the USA assets and will provide certain operation and maintenance services for these power plants.

With the acquisition of Invenergy, SunEdison will get an additional opportunity of developing approximately 6.6 gigawatts (GW) wind power projects, with a further 2.5 GW under construction.

The company expects to complete the transaction by the fourth-quarter fiscal 2015.

The 460 MW of contracted wind generation assets will help TerraForm to increase its power generation capacity.

The emergence of companies like TerraForm, which buy and hold clean-power plants and collect revenue through decades-long contracts to sell electricity, is providing more capital for developers to build more projects, said Invenergy Chief Executive Officer Michael Polsky.

TerraForm also raised its 2016 per-share dividend target by 11% to $1.70 from its previous guidance for $1.53.

SunEdison, which is the world’s largest renewable energy development company, entered the U.S. market in early 2015 through the acquisition of First Wind for $2.4 billion.