SunEdison adds South American hydroelectric power to portfolio

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SunEdison Inc. has completed a deal that includes the acquisition of five renewable energy project portfolios and several corporate platforms, giving the U.S.-based developer its first hydroelectric power interests in Brazil.

The deal, announced earlier this week, gives SunEdison 336 MW of combined operating wind and hydroelectric assets from Brazil's Renova Energia. SunEdison did not disclose what specific projects were included in the agreement, but said it has also brokered rights of first offer for 1,870 MW of other renewable projects -- 534 MW of which are operating projects, with the remainder being contracted backlog projects.

SunEdison has also signed a letter of intent to buy a 16% share in Renova that includes the ability to transfer the ROFO projects to call right projects for SunEdison at pre-determined prices.

The Brazilian assets all have long-term power purchase agreements with "investment grade off-takers", according to the company.

SunEdison has also signed a definitive agreement to acquire energy developer Latin American Power (LAP) Holdings BV, which, the company said, will become its "global hydropower development platform."

The LAP acquisition adds to SunEdison's portfolio 73 MW of operational hydropower plants in Peru, with additional projects in both Peru and Chile in the development stage.

SunEdison's non-hydro acquisitions include windpower in India from Fersa Energias Renovables SA; solar in India from Chint Solar (Zhejang) Co. Ltd.; wind and solar in South Africa from Eskom; solar in Urugua from Alto Cielo SA; and two Chinese wind development and operations and maintenance companies from Honiton Energy Holding Ltd.

"SunEdison intends to act quickly to address the opportunity in emerging markets, where the majority of future global electric power infrastructure investments will be deployed," CEO Ahmad Chatila said. "These acquisitions are the result of an extensive global search for the best developing partners in each of our target markets -- partners with operating fleets of high-quality power plants with long-term contracts with creditworthy counterparties.

"Our announcement today is the first stage in our plan to move rapidly to capitalize on the opportunity to provide clean, renewable, cost-efficient power to the fast-growing emerging markets."
 

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