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Offshoot of Fallen Clean Energy Giant Takes It Slow

The name on the door is still TerraForm Power Inc. Its shares are still traded and the company still owns an extensive portfolio of wind and solar farms. But look inside, and it’s clear plenty of things have changed.

Since Brookfield Asset Management Inc. acquired a controlling stake in October, TerraForm is less reliant on acquisitions to achieve growth. That was the way of previous owner SunEdison Inc., the clean-energy giant that flamed out in the biggest bankruptcy of 2016 after a multicontinent buying binge.

Brookfield, Canada’s largest alternative asset manager, is taking a more conservative approach, one that’s more in line with its own strategy of predictable and steady growth. That includes setting a lower but realistic dividend target, using employees instead of contractors, moving the headquarters to New York and finding ways to boost the output — and value — of operating power plants.

“We want to imbue it with the culture of Brookfield,” John Stinebaugh, TerraForm’s chief executive officer, said in an interview Friday.

A key shift is the dividend. Toronto-based Brookfield expects to deliver dividend growth of 5 percent to 8 percent a year for TerraForm shareholders. That’s lower than company’s 15 percent to 18 percent target when it operated under SunEdison, a figure that Stinebaugh called “not sustainable.”

Green Giant

With TerraForms’ assets, Brookfield’s portfolio expands deeper into solar and wind

Source: Brookfield Asset Management

Brookfield agreed in March 2017 to take a 51 percent stake in TerraForm Power and all of sister company TerraForm Global Inc. The latter portion of the transaction closed in December. The two deals valued their combined equity at $2.49 billion, and added almost 4 gigawatts of…

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