SunEdison acquires Costa Rica-based renewable energy firm
by Canadian Manufacturing.com Staff
All of the assets in the deal are contracted under long term power purchase agreements with local utilities or suppliers
MARYLAND HEIGHTS M.o.—Renewable energy development company SunEdison, Inc. has agreed to acquire Costa Rica-based wind energy company Globeleq Mesoamerica Energy (GME).
SunEdison will acquire a 70 per cent interest in GME from Actis, an emerging market private equity investor focused on the energy sector, and a 30 per cent interest from Mesoamerica Power Ltd., a private equity firm in Costa Rica.
SunEdison will acquire GME’s portfolio of four operating wind power plants with a capacity of 243 megawatts, and solar power plants with a capacity of 82 megawatts DC located in Costa Rica, Honduras and Nicaragua; 80 megawatts AC of wind farms entering construction in Costa Rica; and a pipeline of 246 megawatts AC of wind under development in various countries across Central America.
“The acquisition of GME strengthens SunEdison’s leadership position in the global wind energy market and significantly expands our presence in Central America, a region that offers growth opportunities for our emerging markets development platform,” said Ahmad Chatila, SunEdison president and chief executive officer. “With this acquisition we not only gain an experienced and talented management team with a proven track record in the region, but also position ourselves to accelerate our performance and deliver attractive returns to our shareholders.”
All of the operational and construction assets are contracted under long term U.S. dollar-denominated power purchase agreements (PPAs) with local utilities or suppliers. Assets in Honduras and Nicaragua have been insured by the World Bank’s Multilateral Insurance Guarantee Agency (through Political Risk Insurance policies).
SunEdison intends to place the wind and solar power plants acquired from GME on the operational call rights list for TerraForm Global. Upon closing, Actis and Mesoamerica Power will become shareholders in TerraForm Global.
The deal is expected to close in the third quarter of 2015, subject to regulatory approvals, third-party consents and customary closing conditions.