TerraForm Global Inc. and TerraForm Power Inc., the “yieldcos” of bankrupt solar company SunEdison Inc., said on Monday they were exploring strategic alternatives, including a sale of their entire business.
The companies, which have yet to file a claim in the Chapter 11 bankruptcy of SunEdison, are working closely with their parent to resolve all inter-company claims, according to statements from both of the TerraForm companies on Monday.
Yieldcos are publicly traded subsidiaries that hold renewable energy assets, including assets bought from their parents or sponsors. They are backed by long-term power purchase contracts with utilities, allowing them to pay regular dividends.
According to presentations posted on the companies’ websites, TerraForm Power owns about 3 gigawatts of power plants and TerraForm Global owns 917 megawatts of wind and solar projects.