BLOOMBERG - TerraForm Power Inc., a company formed by SunEdison Inc. to own and operate power plants, agreed to buy 50 megawatts of energy-storage systems from developer Advanced Microgrid Solutions, a move that may lower costs and spur wider use of the emerging technology.
SunEdison will help finance the battery systems and TerraForm will purchase them once they go into operation starting next year, according to a statement Wednesday. The price wasn’t disclosed.
The deal marks the first purchase of power-storage systems by a so-called yieldco, Tim Derrick, general manager of advanced solutions at SunEdison, said in an interview. The model is becoming increasingly popular with renewable-energy companies, with developers selling completed projects to yieldcos and using the proceeds to fund new power plants.
Adding battery systems to a yieldco portfolio “is about accessing a cost of capital that storage projects cannot access today in capital markets,” Derrick said. “This is an important step forward to drive down the cost of storage and to drive higher deployment.”