BLOOMBERG - TerraForm Power Inc., a company formed by SunEdison Inc. to own and operate power plants, agreed to buy 930 megawatts of wind-power capacity from Invenergy Wind LLC for $2 billion.
Adding the revenue from the seven U.S. and Canadian wind farms in the deal will help TerraForm increase its dividend target 26 percent next year to $1.70 a share according to a statement Monday from the Bethesda, Maryland-based company.
The emergence of companies like TerraForm, which buy and hold clean-power plants and collect revenue through decades-long contracts to sell electricity, is providing more capital for developers to build more projects, said Invenergy Chief Executive Officer Michael Polsky.
“It’s a new phenomenon,” Polsky said in an interview Monday. “It’s helped to proliferate renewable energy.”
Invenergy will retain a 9.9 percent stake in the U.S. assets and plans to use the proceeds to invest in new wind and solar projects, he said.