SunEdison Sells Stake in Plant to Dominion for $320 Million

Updated on
  • Dominion investment follows $500 million purchase in August
  • SunEdison and JPMorgan form venture to invest in clean power

SunEdison Inc., the world’s largest clean-energy developer, agreed to sell half of a 265-megawatt solar farm in Utah to Dominion Resources Inc. for $320 million, expanding a joint venture the two companies formed last month.

Power from the Three Cedars solar project will be delivered to Berkshire Hathaway Inc.’s PacifiCorp utility under a 20-year power-purchase agreement when completed in mid-2016, Maryland Heights, Missouri-based SunEdison said in a statement Tuesday.

The agreement is similar to one announced in August, when Dominion agreed to invest $500 million through the joint venture for half of SunEdison’s 420-megawatt Four Brothers project in Utah. SunEdison lost more than 55 percent of its market value last month, in part because of investors’ concern about its ability to fund growth, and the Dominion deals may provide some assurance it can finance new power plants.

SunEdison’s 50 percent stakes in Four Brothers and Three Cedars will be eligible for purchase by TerraForm Power Inc., a company it formed to own and operate power plants.

In a separate statement, SunEdison and institutional investors advised by JPMorgan Chase & Co. formed another joint venture to fund renewable energy projects. It will be majority owned by the investment bank’s clients and its initial deal is a $300 million purchase of a 33 percent stake in a 425-megawatt portfolio of solar assets owned by Dominion.

SunEdison rose 7.9 percent to $12.94 at the close in New York.

— With assistance by Chris Martin

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