Suzlon sells Big Sky to EverPower
Suzlon has closed the sale of the 240MW Big Sky wind farm in the US state of Illinois just a week after purchasing it, under a deal first flagged up by Recharge in February.
The acquisition of Big Sky by developer EverPower finally closes a long-running battle by Suzlon to recover some value from Big Sky following the bankruptcy of its developer, Edison Mission Energy (EME).
The Indian wind group had loaned $200m to EME as part of a turbine supply agreement, but the developer’s bankruptcy left Suzlon with no option but to take ownership of the plant last week.
By then it had already laid plans to sell the wind farm on to EverPower, applying for US federal clearance to do so.
Financial terms of the sale to EverPower were not disclosed, but Suzlon has previously said it expects to salvage about $90m from Big Sky.
Suzlon said in a statement: “The sale of Big Sky wind farm to a sound, long-term investor like EverPower is an important part of our disinvestment strategy to hive off non-core assets, and the net proceeds will be used to fuel our business growth.”
The deal brings EverPower’s wind capacity to 752MW, the statement added.
The sale is the second piece of positive news for Suzlon in as many days. Yesterday its Senvion subsidiary announced an €850m ($1.17bn) refinancing deal with a consortium of banks.
Completed in early 2011, the Big Sky Project utilizes 114 Suzlon 2.1MW S88 turbines to generate enough electricity per annum for nearly 50,000 homes while also offsetting over 225,000 tons of CO2 emissions.
"This is a high-quality site which further strengthens EverPower’s position as a major wind energy producer in the US," says Stefan Thiele, managing director at Terra Firma, parent company of EverPower.