Sun Edison, J.P. Morgan Team Up to Boost Renewables Investment
SunEdison and J.P. Morgan Asset Management-Global Real Assets are joining forces to build and operate renewable energy projects under a strategic partnership signed last week.
SunEdison is the world’s largest renewable energy developer, CleanTechnica notes, while J.P. Morgan has more than US$85 billion in assets under management.
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“This partnership supports SunEdison’s growth strategy while strengthening our liquidity,” said SunEdison Executive Vice President Paul Gaynor. “Attracting strong investors such as J.P. Morgan Asset Management reinforces the breadth and depth of demand for ownership of renewable energy assets.”
“These high-quality projects represent a significant and attractive investment in viable, long-term infrastructure assets for our investors,” said Matt LeBlanc, J.P. Morgan’s chief investment officer for OECD infrastructure.
J.P. Morgan’s clients will take majority ownership of the new partnership, CleanTechnica reports. The first investment will likely be a 33% interest in a 425-MW portfolio of 24 solar projects across six U.S. states, owned by Dominion Virginia Power and valued at $300 million.
“All proceeds from the strategic partnership between SunEdison and J.P. Morgan are expected to provide for payment of an agreed-upon upfront development margin,” Hill writes. “SunEdison will have the ability to repurchase any of these projects, and any projects not called by SunEdison will continue to be owned by the partnership.”
Earlier in the week, SunEdison announced a five-year deal to develop 2 GW of solar and wind projects in the Indian state of Tamil Nadu. “SunEdison expects to invest between INR 120 billion (US$1.8 billion) and INR 140 billion to realize the projects,” SeeNews reports. “The move aligns with SunEdison’s commitment to deploy 15.2 GW of renewable energy capacity in India by 2022.”