SunEdison and TerraForm Power Close Financing for a Portfolio of 97 MW of Solar Projects
- Published: Wednesday, 22 April 2015 09:50
SunEdison, Inc. and TerraForm Power, Inc. have announced that they have closed financing of a 97 megawatts DC portfolio of utility-scale photovoltaic solar projects in the UK that were connected during the first quarter of 2015.
The portfolio is comprised of eight large-scale solar farms across England and Wales that will have the combined capacity to power nearly 30,000 homes per year. Individual project size varies from 6 to 19 MW.
Financing for the construction of the solar farms has been provided by Bayerische Landesbank, which provided a £84.6 million non-recourse loan. EDF Energy, the UK's largest producer of low-carbon electricity, will purchase the solar energy under a 15-year power purchase agreement (PPA) with SunEdison.
As announced on March 31, 2015, Terraform Power has acquired plants with a capacity of 53 MW from this portfolio. It intends to acquire the remaining 44 MW, currently included on SunEdison’s Call Right Project List for TerraForm Power, during the second quarter of 2015.
José Pérez, SunEdison’s President of EMEA and Latin America, said: “As we continue to provide clean energy to the UK market, this portfolio of projects marks a new milestone for us. Since entering the UK market, we have been able to connect over 375 MW in just 12 months. The total installed capacity of our projects in the UK powers the equivalent of more than 110,000 local homes per year. The UK will continue to be a key market for our growth strategy, and we look forward to helping the UK reach its renewable energy targets. We are proud to partner with world-class utility EDF Energy for the first time in the UK, and we hope to expand our collaboration in the future. The financing agreement for the construction of 97 MW of solar farms also demonstrates a continuing relationship with Bayern LB, with whom we’ve worked on a number of projects to support the need for low carbon power sources.”
Carlos Domenech, President and Chief Executive Officer of TerraForm Power, said: “The financing and interconnection of this large portfolio and its addition to TerraForm Power’s fleet demonstrates the value that our partnerships with SunEdison and world-class financial institutions like Bayern create. Through these ongoing relationships, we are able to diversify our operating portfolio in ways that allow us to generate robust returns for our shareholders.”
“We are delighted to continue our successful cooperation with one of our most important clients, SunEdison,” Alexander von Dobschutz, Bayerische Landesbank’s Managing Director, Global Head Financial Institutions and Structured Finance stated: “In closing one of the largest solar portfolios in the UK we not only further establish our strong position in the UK renewables market but also support the growth strategy of our client SunEdison.”
John Cockin, Director of B2B Business Services at EDF Energy, said: “We’re pleased to have helped SunEdison secure its financing with a bankable PPA, and we’re pleased that these projects qualify under the Renewable Obligation program thanks to a proper coordination and joint work to meet deadline. We look forward to working with SunEdison on future solar energy projects in the UK.”
SunEdison has built and connected more than 375 MW of solar power plants in the UK in just 12 months. In this period, the company has raised £287.3 million for project financing and has transferred 238 MW to the Terraform Power operating portfolio.
• Bayerische Landesbank provided £84.6 million financing for the construction of the projects
• EDF Energy entered into a 15-year power purchase agreement for the generated energy
• The 97 MW portfolio further strengthens SunEdison’s position in the UK market, bringing the total interconnected capacity to more than 375 MW in just 12 months