Renewable energy development company SunEdison signed an agreement to acquire Globeleq Mesoamerica Energy (GME), a renewable energy company with its headquarters in Costa Rica.
SunEdison will buy a 70 percent interest in GME from Actis, a global emerging market private equity investor focused on the energy sector, and a 30 percent interest from Mesoamerica Power. The acquisition will solidify SunEdison’s position as the largest renewable energy developer in Central America as it expands its presence in the global renewable energy market.
Through the acquisition, SunEdison will acquire GME’s development and asset management platform: a portfolio consisting of four operating wind power plants with a capacity of 243 MW AC, and a solar power plant with a capacity of 82 MW DC located in Costa Rica , Honduras and Nicaragua; 80 MW AC of wind farms entering construction in Costa Rica; and a pipeline of 246 MW AC of wind under development in various countries across Central America.
All of the operational and construction assets are contracted under long term U.S. dollar-denominated power purchase agreements (PPAs) with local utilities or suppliers. Assets in Honduras and Nicaragua have been insured by the World Bank’s Multilateral Insurance Guarantee Agency (through Political Risk Insurance policies).
SunEdison intends to place the wind and solar power plants acquired from GME on the operational call rights list for TerraForm Global. Upon closing, Actis and Mesoamerica Power will become shareholders in TerraForm Global.
The definitive agreement was signed June 12, 2015 with closing expected in the third quarter of 2015, subject to regulatory approvals, third-party consents and customary closing conditions.