It has been noticed in recent times that private equity firms are eyeing infrastructure deals, particularly partnerships with companies, to capitalize on increasing solar energy demand around the world.
SunEdison, the solar energy development division of MEMC Electronic Materials Inc. (WFR), has agreed to form a joint venture with First Reserve Corp., the world's leading private equity firm in the energy industry.
The JV will fund the acquisition of up to $1.5 billion in current and future SunEdison solar photovoltaic energy projects.
The initial equity commitment for the joint venture of $167.0 million will be contributed by both the companies. Thereafter, the JV would raise sufficient debt to fund other SunEdison projects valued up to a total value of $825 million.
Moreover, if internal finances, external borrowing opportunities and other development conditions permit, First Reserve would raise an additional $150.0 million in equity.
One other milestone announced last week was a 15 million kilowatt hour production capacity from 32 solar installations at Staples Inc. (SPLS) stores and fulfillment centers across North America. The 15 million kilowatt hours of energy produced is expected to power over 700 average US homes for one year. Staples, Inc. is the world's largest provider of office products.
The SunEdison/Staples solar hosting program was started in 2005 under a power purchase agreement (PPA) between the two companies. According to the agreement, SunEdison was to finance, install, own, operate and maintain the solar power systems deployed at Staples facilities with no upfront costs to Staples. In return, Staples would have to purchase the energy produced at mutually decided rates for 20 years. The PPA has already prevented emission of an estimated 17.7 million lbs of CO2 to date.
In April, SunEdison announced plans to complete 12 one-megawatt (MW) solar energy plants in the province of Lecce, Apulia in Italy, supported by a €47.0 million financing deal with Norddeutsche Landesbank Girozentale of Germany.
With a goal to boost solar electric power interconnections in Italy over the coming years, the SunEdison Lecce solar park expects to generate power for more than 3,300 homes in its first year of operation, while curbing carbon dioxide emissions that are equivalent to taking 2,000 cars off the road.
We are encouraged by SunEdison’s solar initiatives and believe that the unit plays in the industry’s sweet spot. We believe that consistent efforts in the area will inevitably lower costs, bringing greater parity in prices between solar and fossil fuels. We expect this to drive swifter adoption of solar technology.
Read the full analyst report on "WFR"
Read the full analyst report on "SPLS"
Zacks Investment Research
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The JV will fund the acquisition of up to $1.5 billion in current and future SunEdison solar photovoltaic energy projects.
The initial equity commitment for the joint venture of $167.0 million will be contributed by both the companies. Thereafter, the JV would raise sufficient debt to fund other SunEdison projects valued up to a total value of $825 million.
Moreover, if internal finances, external borrowing opportunities and other development conditions permit, First Reserve would raise an additional $150.0 million in equity.
One other milestone announced last week was a 15 million kilowatt hour production capacity from 32 solar installations at Staples Inc. (SPLS) stores and fulfillment centers across North America. The 15 million kilowatt hours of energy produced is expected to power over 700 average US homes for one year. Staples, Inc. is the world's largest provider of office products.
The SunEdison/Staples solar hosting program was started in 2005 under a power purchase agreement (PPA) between the two companies. According to the agreement, SunEdison was to finance, install, own, operate and maintain the solar power systems deployed at Staples facilities with no upfront costs to Staples. In return, Staples would have to purchase the energy produced at mutually decided rates for 20 years. The PPA has already prevented emission of an estimated 17.7 million lbs of CO2 to date.
In April, SunEdison announced plans to complete 12 one-megawatt (MW) solar energy plants in the province of Lecce, Apulia in Italy, supported by a €47.0 million financing deal with Norddeutsche Landesbank Girozentale of Germany.
With a goal to boost solar electric power interconnections in Italy over the coming years, the SunEdison Lecce solar park expects to generate power for more than 3,300 homes in its first year of operation, while curbing carbon dioxide emissions that are equivalent to taking 2,000 cars off the road.
We are encouraged by SunEdison’s solar initiatives and believe that the unit plays in the industry’s sweet spot. We believe that consistent efforts in the area will inevitably lower costs, bringing greater parity in prices between solar and fossil fuels. We expect this to drive swifter adoption of solar technology.
Read the full analyst report on "WFR"
Read the full analyst report on "SPLS"
Zacks Investment Research
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