Gamesa, a global technology leader in wind energy, and SunEdison, the world’s largest renewable energy development company, have signed a Memorandum of Understanding (MoU) with the aim of co-developing up to 1 GW of wind energy projects by 2018.
Under the terms of the MoU, the two companies would set up a joint venture 50 percent owned by each party for the co-development of wind projects, selected by SunEdison from Gamesa’s global pipeline, with a focus on India and Mexico.
Once the projects are ready to build, SunEdison would acquire them from the joint venture, assuming the financing of their construction with the intent to place them into TerraForm once operational.
At the same time Gamesa would supply all of the wind turbines as well as, potentially, full engineering, procurement, and construction (EPC) services for the co-developed projects. It would also operate and maintain the projects co-developed by the joint venture under long-term operations and maintenance (O&M) agreements.
In addition, SunEdison would be committing to the purchase of additional wind turbines from Gamesa for its facilities based on the amount of MWs co-developed under the scope of the agreement.
The definitive agreements concerning the creation of the joint venture, including initial selection of projects for co-development, are expected to be signed by the end of 2015.
“This alliance with SunEdison falls under the umbrella of our new Technology Development Programme within the 2015-2017 Business Plan and will enable Gamesa to make the most of its technical and management experience, reinforcing its leadership as developer. The combination of both companies’ strengths would also unlock synergies and maximise project returns,” said Xabier Etxeberria, Gamesa’s Business CEO.
“This agreement evidences Gamesa’s ability to come up with flexible collaboration and joint investment alternatives with very limited funding requirements,” underscored David Mesonero, Gamesa’s Managing Director of Corporate Development.
“This agreement will accelerate SunEdison’s drive to respond to rapid growth in global wind markets,” said Paul Gaynor, SunEdison Executive Vice President of the Americas and EMEA. “By partnering with Gamesa, one of the world’s leading wind technology and development companies, we’re particularly well positioned to capture the opportunity in India and Mexico, two regions where we already have a strong solar presence”.
“This strengthens our position in the global wind energy market,” said Carlos Domenech, President and Chief Executive Officer of TerraForm Power. “This joint venture reinforces our commitment to emerging markets”.