Yesterday (Nov. 23) NRG Energy announced that it completed the acquisition of the largest chunk of SunEdison’s domestic solar and wind power projects. The acquisition of more that 1.5 gigawatts (GWs) of SunEdison’s projects for an initial payment of $124 million, will add to the energy giant’s already substantial portfolio of renewable energy.
SunEdison was, in some senses, a victim of its own success in growing utility-scale renewable energy. The company quickly grew its portfolio of renewable generating assets across the renewable energy spectrum, as well as manufacturing to $20.7 billion but had liabilities of 16.7 billion earlier in 2016 when it filed for bankruptcy protection. Since then it’s been selling off its assets.
As such, NRG was able to get the projects for a minimal investment. Beyond the initial payment, NRG agreed to make a subsequent payment of $15 million when the power purchase agreements for 111 megawatts (MWs) of construction-ready solar projects in Hawaii are completed and up to $44 million in future payments dependent on achieving other milestones—a total of $188 million.
“We’re proud to share that we’ve closed on our acquisition of all projects within NRG’s 1,500 MW SunEdison transaction,” the company said on its executive blog. “The portfolio consists of more than 1,500 megawatts (MW) (AC) of utility-scale solar photovoltaic and wind projects that are either completed or in varying stages of development across the United States.”
“This transaction will also enable NRG, as one of America’s leaders in renewable energy, to enter new markets for utility-scale solar projects, including Hawaii and Utah. Nearly 265 net MW (AC) of the portfolio is now online and operational, increasing the NRG and NRG Yield, Inc. operating renewables portfolio to nearly 4.7 GW across 26 states,” NRG stated. Prior to the purchase, NRG was already one of the largest renewable energy companies in the US. It had 1.2 gigawatts of wind and solar across the commercial, utility and residential spectrum—and its NRG Yield Co has another 2.6 GWs of renewable energy.
The newly acquired projects include a partnership interest in a 530 MW portfolio of seven solar projects in Utah, a 154 MW partially constructed solar project in Texas and ownership of 1,100 MW of solar and wind projects in various stages of development. Outside of this transaction NRG also acquired 29 MWs of distributed generation and community solar from SunEdison, according to the executive blog.Tweet