NRG Wins Auction Bid for SunEdison Clean Energy Projects

HOUSTON, TX -- NRG Energy has won its bid to acquire numerous clean energy projects from bankrupt SunEdison.

The sale is one of several that SunEdison, once the fastest-growing U.S. renewable energy company, is holding since filing for Chapter 11 bankruptcy protection in April after an unsuccessful debt-backed acquisition drive.

Solar industry experts indicated that SunEdison’s bankruptcy was not a poor reflection of the clean-energy sector, which is many believe has demonstrated sustainable and robust growth potential.

"SunEdison had a balance sheet that is way out of line with any other solar company," said Shayle Kann, senior vice president and renewable energy research firm GTM Research told Reuters. "The projects themselves are good. They just bought too much too quickly."

Meanwhile, the deal, which is worth an estimated $144 million, still needs to be accepted by a bankruptcy court.

Judge Stuart Bernstein in Manhattan will hold a hearing to approve the NRG bid tomorrow, a court filing by SunEdison showed last week.

If it is approved, NRG would acquire the 200-megawatt Buckthorn solar farm in Pecos County.

The solar energy project, which is expected to be completed sometime in 2017, would make the city of Georgetown -- a community of 60,000 people located north of Austin -- the largest municipality in the nation powered solely by renewable sources.

The $144 million deal, which would grow to $188 million if milestone benchmarks are met, will include solar and wind projects in Utah, Washington, California, Maine and Hawaii.

The discount for NRG is steep because most of the projects remain in development and require additional investment.

NRG spokesman Erik Linden said in a statement Tuesday that the pending acquistion from SunEdison “further reaffirms our ongoing leadership and commitment to renewable energy.”

NRG owns other wind-power projects in Texas, but this deal if approved, will give the energy giant a solar presence in Texas.

SunEdison had two major solar projects in Texas -- including the Buckthorn Solar Farm -- scheduled to begin operations this year, but both were delayed at least into 2017.

The other project is the 116-megawatt Castle Gap solar farm in West Texas that’s supposed to sell power to Dallas-based Luminant.

However, the Castle Gap solar farm is not among the assets acquiring from SunEdison by NRG.

Image: Hernan Pinera via Flickr