TerraForm Power Inc., a company formed by SunEdison Inc. to own and operate power plants, is expanding its stake in a portfolio of 48 solar farms in six states.
The power plants have a total of 34 megawatts of capacity and were built jointly by Duke Energy Corp. and Integrys Energy Group Inc. Bethesda, Maryland-based TerraForm bought 9 megawatts of capacity from Duke, according to a statement Thursday, after a 23-megawatt purchase from Integrys announced June 4.
The solar farms in Arizona, California, Massachusetts, New Jersey and Pennsylvania all went into operation between 2011 and 2013 and have long-term power-purchase agreements. Terms of the Duke deal weren’t disclosed.
“We’ve had a successful partnership with Integrys Energy, and their decision to sell their interest in the JV to TerraForm Power prompted us to a similar decision,” Greg Wolf, president of Duke’s commercial portfolio unit, said in the statement.
SunEdison formed TerraForm to buy and hold renewable energy projects once they’re complete, and the venture sold shares in an initial public offering in July 2014. The structure, known as a yieldco, helps the parent company lower its financing costs while the steady revenue from selling electricity supports dividend payouts to shareholders.