Power News We love to talk!

NOV 25 2015

SunEdison plans to offload 400 MW of solar capacity in India

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 25th NOV 2015

US solar company SunEdison Inc said it would sell projects in India with generating capacity of 425 megawatts (MW) to its "yieldco" TerraForm Global Inc for $231 million.

Heavily indebted SunEdison said earlier this month that it would stop selling projects to its two yieldcos - dividend-paying units that hold generating assets of a parent solar or wind power company - until market conditions improved.

"We'll go through evaluation of good opportunities and wherever it makes sense we'll continue to transact with the cash available in our yieldcos already," Pashupathy Gopalan, SunEdison Asia Pacific's president, said on Tuesday.

Shares of the company, which also said a unit had repaid almost all money related to a margin loan with Deutsche Bank, rose as much as 16.3 per cent.

"We believe a significant portion of the recent volatility around the company and its subsidiaries has been attributed to the margin loan," SunEdison Chief Executive Ahmad Chatila said in a statement.

Up to Monday's close, SunEdison's shares had lost nearly 69 per cent of their value since Oct. 7 when the company said it would stop sales of renewable energy assets to its "yieldcos" and sell more projects to third parties. Sales to third-parties generally mean higher prices for the assets.
SunEdison, which grew quickly through acquisitions, has been plagued by liquidity concerns, and the company reported a bigger-than-expected quarterly loss earlier this month.

TerraForm Global, whose shares fell as much as 7.5 per cent to $5.02 on Tuesday, has canceled plans to buy other assets to buy SunEdison's projects, SunEdision said.

SunEdison operates Indian solar plants with capacity of about 450 MW. It has another 800 MW of capacity under development and recently won a tender for a 500 MW plant in the state of Andhra Pradesh.

"We continue to expand in India ... It will become a country of even more importance for us," Gopalan told reporters earlier on Tuesday.

India is targeting 100 gigawatts of solar power by 2022, or about 33 times today's level, to help to address chronic power shortages. Gopalan said SunEdison continued to look at selling projects in various countries to raise capital.

"To grow you need capital. Our balance sheet does not have the necessary capital," he said. SunEdison has terminated a deal to buy Continuum Wind Energy, which has most of its assets in India, he said.

Tags

Andhra Pradesh Renewable Energy Wind Wind Power Energy Asia United States Power India solar power Solar

Related News

  • Living in the dark: 240 million Indians have no electricity  Read more
  • Power ministers conference at Switch Global Expo today  Read more
  • Sun Pharmaceuticals founder Dilip Shanghvi in talks to acquire stake in Suzlon Energy  Read more
  • Make in India conclave: State gets Rs 2 lakh cr investment proposals; Tata Steel, Adani Group, NTPC in major investors list  Read more
  • Prime Minister's Office asks Coal Ministry to give de-allocated mines to CIL  Read more
  • TNERC approves the procurement of 350 MW RTC and 500 MW peak by TANGEDCO through DEEP  Read more
  • Ushering In An Age Of Smart Transport: An Overview Of Electric Vehicles And Why They Are Crucial For India  Read more
  • Financial turmoil at SunEdison imperils solar projects worldwide  Read more
  • Andhra Pradesh to start buying solar power from Kadapa plant  Read more
  • Centre to allot 1,000 MW to southern grid in one week  Read more