SunEdison cancels 2.7GW of Brazilian power asset acquisition

2 December 2015 (Last Updated December 2nd, 2015 18:30)

US-based renewable energy giant SunEdison has terminated previously announced transactions by its yieldco TerraForm Global, which involved acquisition of 2.7GW of wind and hydro power projects in Brazil.

US-based renewable energy giant SunEdison has terminated previously announced transactions by its yieldco TerraForm Global, which involved acquisition of 2.7GW of wind and hydro power projects in Brazil.

The firm has cancelled the $250m securities purchase agreement with Brazilian energy group Light and entitled the firm to own 16% stake in Renova Energia.

It has also negated another agreement to buy certain development-stage projects from Renova between 2016 and 2020.

The ‘backlog agreement’ would have added 12 wind and hydro-electric projects to Terraform’s portfolio.

"While it is disappointing that the agreement was terminated, we remain committed to Brazil."

The projects are estimated to have a combined value of approximately $4bn.

The 50:50 joint venture with Renova, however, remains active, SunEdison said, which is aimed at the development of 1GW of utility scale solar photovoltaic projects in Brazil.

SunEdison chief financial officer and TerraForm Global chief executive officer Brian Wuebbels said: "While it is disappointing that the agreement was terminated, we remain committed to Brazil.

"In addition, Renova remains a valued partner and we look forward to continuing our relationship with them on our solar development joint venture."

SunEdison is heavily indebted at present, which is likely to have resulted in the cancellation of the deals, reports pv-magazine.

The firm had announced certain measures to raise capital, which involves a decision to stop divestment of its projects into its yieldcos, and scaling back of its acquisition deals.