SunPower Corp. announced it is evaluating strategic options for its YieldCo joint venture (JV), 8point3 Energy Partners, following the announcement by its JV general partner, First Solar, that it has notified the board of directors of the partnership that it is reviewing alternatives for the sale of its interest in 8point3.
SunPower and First Solar will coordinate this review, which will include, but is not limited to, a potential replacement partner for First Solar. While SunPower believes the partnership still offers significant, long-term strategic value through the acquisition of additional high quality renewable power plants, distributed generation projects and associated cash flows, the company will undertake a review of its strategic alternatives given First Solar’s decision.
“We want to thank First Solar for their strong partnership in creating the industry’s first, solar-only YieldCo. After approximately two years of successful operational performance, we have proven that a diversified portfolio of high quality renewable assets is an ideal vehicle to drive stable cash flow growth for investors,” said Tom Werner, SunPower president and CEO. “We will work with our financial advisors to evaluate all alternatives for our investment in 8point3, including a potential replacement partner for First Solar, as we believe 8point3 can continue to benefit from owning long-term, high quality renewable assets.”
The strategic review process is in the early stages, is ongoing, and no decision on any particular alternative has been reached. In addition, the company cannot assure that any particular alternative will be pursued or effected. SunPower does not intend to disclose further developments related to this process unless required by law or otherwise deemed appropriate. The sponsor-appointed directors and officers of the general partner of 8point3 Energy Partners remain committed to prudently managing the partnership throughout this evaluation process.
News item from SunPower