SunEdison, Gamesa Sign MoU To Develop Up To 1 GW Of Wind Power Plants

(RTTNews) - SunEdison Inc. (SUNE) and Gamesa announced that they have signed a Memorandum of Understanding to create a joint venture to develop up to 1 gigawatt (GW) of wind energy power plants globally by 2018. SunEdison and Gamesa will each own a 50 percent stake in the joint venture.

As per the terms of the agreement, Gamesa will supply the wind turbines and be responsible for operation and maintenance (O&M) of the wind power plants as part of long term O&M agreements. Gamesa may also provide engineering, procurement, and construction services for the projects. Ownership of the projects will be shared during development; upon construction SunEdison will acquire the projects from the joint venture. SunEdison will purchase additional wind turbines from Gamesa, based upon development volume targets achieved by the joint venture.

SunEdison noted that it intends to place the power plants acquired from the joint venture on the call rights list for TerraForm Power. It is expected that the definitive agreement, including the initial selection of projects for development from Gamesa's pipeline, will be signed by the end of 2015.