NRG Poised to Scoop Up 2.1 GW of Renewable Assets from Bankrupt SunEdison
NRG Energy has taken action to acquire 2.1 GW of utility-scale wind and solar assets owned by bankrupt renewables giant SunEdison with a $144 million auction bid this week.
New Jersey–based NRG Energy on Sept. 12 executed a purchase and sale agreement (PSA) to take on 200 MW of SunEdison’s construction-ready, fully contracted solar assets in Texas. It will also acquire interest in a structured partnership with SunEdison for 683 MW of “nearly complete,” fully contracted solar assets in Utah, as well as 1.25 GW of solar and wind assets in different stages of development across the U.S.
New Jersey–based NRG Energy on Sept. 12 executed a purchase and sale agreement (PSA) to take on 200 MW of SunEdison’s construction-ready, fully contracted solar assets in Texas. It will also acquire interest in a structured partnership with SunEdison for 683 MW of “nearly complete,” fully contracted solar assets in Utah, as well as 1.25 GW of solar and wind assets in different stages of development across the U.S.
The transaction hasn’t closed yet, cautioned NRG spokesperson Erik Linden, noting that there is a court hearing scheduled on Sept. 15 to continue the process.
“We look forward to working with SunEdison, its clients, stakeholders, and the court to close the transaction, which further reaffirms our ongoing leadership and commitment to renewable energy,” he said.
Linden said the PSA provides for total consideration of up to $188 million. That includes an initial payment of $129 million and payment of $15 million when the power purchase agreements of certain assets in development are executed. NRG will also pay SunEdison $44 million if certain projects achieve their development milestones.
Maryland Heights, Mo.–based SunEdison, a company that had 1,000 operational sites worldwide, on April 21 filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company has struggled to shoulder a debt of more than $11.7 billion accumulated in part from a drive begun in 2014 to acquire solar and wind developers around the world. The troubled company has since moved to sell a portion of its assets to raise money owed to creditors.
In late August, one of China’s largest solar equipment manufacturers, GCL-Poly Energy Holdings, agreed to buy SunEdison’s solar materials assets for $150 million.
Last week, SunEdison cancelled a key December agreement with creditors D.E. Shaw & Co. and Madison Dearborn Capital Partners that would have transferred some assets to them. But those companies also agreed not to block the planned sale of projects in Hawaii and California. D.E. Shaw is also reportedly weighing a bid for SunEdison’s controlling stake in TerraForm Power, SunEdison’s yield-co that has a market capitalization of $1.7 billion.
—Sonal Patel, associate editor (@POWERmagazine, @sonalcpatel)