(Bloomberg) — TerraForm Power Inc., a company formed by
SunEdison Inc. to own and operate power plants, is expanding its
stake in a portfolio of 48 solar farms in six states.
The power plants have a total of 34 megawatts of capacity
and were built jointly by Duke Energy Corp. and Integrys Energy
Group Inc. Bethesda, Maryland-based TerraForm bought 9 megawatts
of capacity from Duke, according to a statement Thursday, after
a 23-megawatt purchase from Integrys announced June 4.
The solar farms in Arizona, California, Massachusetts, New
Jersey and Pennsylvania all went into operation between 2011 and
2013 and have long-term power-purchase agreements. Terms of the
Duke deal weren’t disclosed.
“We’ve had a successful partnership with Integrys Energy,
and their decision to sell their interest in the JV to TerraForm
Power prompted us to a similar decision,” Greg Wolf, president
of Duke’s commercial portfolio unit, said in the statement.
SunEdison formed TerraForm to buy and hold renewable energy
projects once they’re complete, and the venture sold shares in
an initial public offering in July 2014. The structure, known as
a yieldco, helps the parent company lower its financing costs
while the steady revenue from selling electricity supports
dividend payouts to shareholders.
To contact the reporter on this story:
Justin Doom in New York at
jdoom1@bloomberg.net
To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Will Wade, Jim Efstathiou Jr.