Renewable energy firm SunEdision has agreed to buy a range of hydro assets in Brazil, Peru and Chile as part of a wider acquisition of five renewable energy portfolios and two corporate platforms worldwide.
Building on a long-standing strategic relationship, SunEdison has signed a definitive agreement to acquire 336MW of operating wind and hydropower assets from Renova Energia, the largest renewable energy company in Brazil. The agreement also provides SunEdison with a Third Party Right of First Offer (ROFO) for 1870MW of renewable energy projects, of which 534MW are operating projects and the remainder are contracted backlog projects, as well as a ROFO for future pipeline projects developed by Renova. In addition, SunEdison intends to buy a 16% stake in Renova that also includes the ability to transition the ROFO projects to call right projects for SunEdison with pre-determined prices.
The operating assets have long-term PPAs with investment grade off-takers. The Renova asset acquisition also marks the entry of SunEdison into the Brazilian hydropower market.
The firm has also signed a definitive agreement to acquire Latin American Power (LAP), a leading hydropower and wind energy producer in Chile and Peru. Through this acquisition, LAP will become the global hydropower development platform for SunEdison.
The acquisition includes 73MW of operating hydro plants and 48MW in development stage in Peru, and a range of hydro assets under construction and in development in Chile. The six operating hydropower plants in Peru have long-term PPAs in place with investment grade off-takers.
All transactions are expected to close in either the second or third quarter of 2015, subject to regulatory approvals, third-party consents and customary closing conditions.
