Gamesa and SunEdison to form JV to develop projects

WORLDWIDE: Gamesa and developer SunEdison will create a new company to jointly develop projects up to 1GW, with a focus on India and Mexico.

The Gamesa and SunEdison JV will focus on India and Mexico

The two companies have signed a memorandum of understanding to set up a 50:50 joint venture. The JV will develop projects to the start of construction, then SunEdison will acquire the projects and fund the construction phase. SunEdison will place the projects into its TerraForm yieldco.

The US developer will select up to 1GW of projects from Gamesa's global pipeline, with a focus on Mexican and Indian markets.

Gamesa will supply its wind turbines to the projects and could be contracted to construct them. The manufacturer said it will provide operations and maintenance services to the projects under long-term deals.

As part of the agreement, SunEdison would have the option acquire the same amount of turbines from Gamesa for its own projects equal to the amount of MWs co-developed in the JV.

The formal agreement between the two companies is expected to be signed before the end of this year.

SunEdison, traditionally a solar power developer, and its TerraForm yieldco have made several large acquisitions in the wind sector in the last year.

Last month, SunEdison acquired the Indian wind project developer Continuum and Central American renewables developer Globeleq Mesoamerica Energy as it attempts to expand its global wind footprint.

In November 2014, it acquired US developer First Wind for $2.4 billion, which included a 1.3GW wind portfolio.

Also, in April 2015, the US firm Atlanitc Power Corporation also sold its 521MW wind portfolio to TerraForm for $350 million. The deal was finalised this week.