On Monday, South African-based renewable independent power producer BioTherm Energy announced it has agreed to sell a portion of ownership in its solar and wind power projects to international solar energy company SunEdison.
The respective South African power projects have a combined generation capacity of 48.5MW.
Finance and Investment
The IPP is backed by global private equity firm Denham Capital Management LP, which has an estimated $7.9 billion of assets under management, BioTherm Energy said in a statement.
SunEdison will purchase 60% of the interest in BioTherm’s round one portfolio which includes three operating assets.
According to the renewable IPP, the two power plants are contracted under two separate 20-year fixed-price power purchase agreements with South African state-owned power utility Eskom.
The PPAs have a weighted average contract term of 19 years, BioTherm added.
According to BioTherm, the transaction is expected to close shortly, subject to review from the South African Department of Energy and normal closing conditions.
SunEdison will takeover the management responsibilities for both power plants beginning one year after the transaction closing date, BioTherm said.
According to BioTherm Energy, Denham has committed $150 million to the BioTherm platform to establish a credible pipeline of renewable energy projects.