SunEdison and TerraForm Power had together announced a purchase of new wind turbines for developing up to 1.6GW of incremental wind energy projects which qualify for the U.S. federal production tax credit (PTC). TerraForm will purchase the projects from SunEdison once they achieve commercial operation.
On November 17, 2014, SunEdison and TerraForm announced that they had signed a definitive agreement to acquire First Wind for $2.4 billion. The purchase included over 1.6 GW of pipeline and backlog projects of which 1.4 GW were already PTC and or ITC qualified projects and an additional 6.4 GW of project development opportunities.
"The purchase of these PTC qualified wind turbines will further enhance our renewable energy development engine and increase its already impressive growth trajectory," said Ahmad Chatila, President and Chief Executive Officer of SunEdison. "The acquisition of First Wind accelerates our ability to capitalize on the attractive growth opportunities in the global wind power markets. We planned for the most conservative case – that the PTC was not extended. However, when a two week extension of the PTC was created, we moved very quickly and secured the 2014 purchase of top-tier turbines."
Mr. Chatila added: "Following the closing of the First Wind acquisition we will have created an incredible platform for growth: a competitive source of development capital, the ability to convert development assets into operating assets rapidly and cost effectively, and a world class asset management company in TerraForm."
The acquisition of First Wind is expected to close during the first quarter of 2015, subject to usual and customary conditions and regulatory approvals.