SunEdison bankruptcy to impact India most
Sun Edison’s bankruptcy filing in late April is likely to impact India the most, according to EY’s Renewable Energy Country Attractiveness Index. Trouble in the US-based energy company has already triggered “a whirlwind of merger and acquisition activity, with more undoubtedly to follow”.SunEdison has around 700 MW of solar capacity commissioned in India, and a further 1.7 GW under development. However, with the country’s total solar capacity currently around 6.7 Gw, this represents a sizeable portion, and there are concerns that so much capacity being released in the market could push down prices and make lenders reluctant to finance, said RECAI.Investor nervousness in India is already heightened by the dramatic drop in solar tariffs, for which SunEdison has also been partly blamed given its low bid of $60 per MWh for 500 MW of solar capacity in Madhya Pradesh back in December. Nevertheless, the company appears determined to pursue its India ambitions — but reaching the target it set itself in 2015 of developing 15 GW by 2022 now looks unlikely.”Ecotricity purchased the group’s UK residential solar business, while Chilean power group Colbún acquired 202 MW of Sun Edison’s in-country solar assets, 31 per cent of Sun Edison’s total solar capacity in the country. It will likely still need to shed the remaining 450 MW as well as its 50 per cent stake in 150 Mw of Brazilian capacity held alongside Renova Energia.
Sun Edison’s two yield cos are not part of the bankruptcy filing, said the report. However, both are still embroiled in lawsuits.