Brookfield Buys Stakes in Two SunEdison Units, Broadening Role in Renewable Market

Researched by Industrial Info Resources (Sugar Land, Texas)--Brookfield Asset Management Incorporated (NYSE:BAM) (Toronto, Ontario) announced it would buy TerraForm Global Incorporated (NASDAQ:GLBL) and take a 51% stake in TerraForm Power Incorporated (NASDAQ:TERP) (both Bethesda, Maryland) for a total of roughly $2.5 billion. Both are units of bankrupt solar company SunEdison Incorporated (Maryland Heights, Missouri) that hold renewable-energy assets, with long-term agreements to sell power. Industrial Info is tracking $2.47 billion in active projects involving Brookfield, more than 90% of which are renewable-based, and $4.78 billion in active projects owned by SunEdison.

TerraForm Global owns or has contracts to acquire 952 megawatts (MW) of wind and solar power in Brazil, China, India, Malaysia, South Africa, Thailand and Uruguay, according to Reuters, while TerraForm Power owns about 2,967 MW of solar and wind assets in the U.S., Canada, the U.K. and Chile.

Brookfield currently owns more than 17,000 MW of renewable-energy assets, and two of its largest proposed projects are in Canada and the U.K.: the $528 million Thunder Mountain Wind Park in Tumbler Ridge, British Columbia and the $183.6 million Torr Head Tidal Energy Farm in Ballycastle, Northern Ireland. As currently designed, the windfarm would generate 320 MW from 160 turbines, while the hydropower station would generate 30 MW from OpenHydro's (Dublin, Ireland) Open-Center turbines. For more information, see Industrial Info's project reports on the Thunder Mountain and Torr Head proposals.

Brookfield also is considering a $306 million second phase to the Torr Head Tidal Energy Farm, which would generate 100 MW from 50 to 100 Open-Center turbines. For more information, see Industrial Info's project report.

One of the largest Brookfield projects under construction is a $60 million turbine refurbishment at Bear Swamp Hydropower Station in North Adams, Massachusetts, which would replace some worn-down parts of the facility's 287-MW Unit 1. For more information, see Industrial Info's project report.

SunEdison's largest project under construction can be found in the U.S.: a $46 million solar power station in Murphy, Idaho. The 20-MW facility will comprise photovoltaic panels with single-axis tracking systems. For more information, see Industrial Info's project report.

But the overwhelming majority--almost 95%--of active SunEdison projects remain in the planning phases, where plenty of factors could increase, decrease or eliminate the expected spending. These include two large proposals for South America: the $400 million El Tapial solar power plant in Tiltil, Chile, and the $302 million Sao Joao solar photovoltaic power complex in Sobradinho, Brazil. The former would generate 195 MW from polycrystalline solar panels mounted on single-axis trackers, and the latter would generate about 149 MW from a compound with five solar parks. For more information, see Industrial Info's project reports on the El Tapial and Sao Joao proposals.

"We are pleased to increase our significant investment in TerraForm Power and to contribute our operating expertise in the sector to position the company for growth," said Sachin Shah, the senior managing partner of Brookfield, in a press release. "We are confident that our significant renewable power operating experience, financial resources and global institutional relationships will provide TerraForm Power with strong financial flexibility and an attractive pipeline for growth moving forward."

SunEdison filed for Chapter 11 bankruptcy protection in 2016, following an unsuccessful, last-ditch effort to acquire properties through debt; for more information, see September 15, 2016, article - SunEdison Sells Major Wind, Solar Projects to NRG Energy After Bankruptcy. Nonetheless, the company has been able to complete several key projects, albeit through partnerships with other companies; for more information, see November 4, 2016, article - Largest Solar Project in Colorado Begins Commercial Operations, and November 10, 2016, article - Three Cedars Solar Power Plant in Utah Begins Commercial Operation.

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