SunEdison (NYSE: SUNE) and Renova Energia S.A. announced that they have created an exclusive joint venture to develop, own, and operate 1 gigawatt of utility scale solar photovoltaic (PV) energy which will supply the Brazilian Regulated Electricity Market. Renova and SunEdison will each own a 50% stake in the joint venture. The venture plans to build and operate four utility scale solar power plants in Bahia State, Brazil, by 2017.

The joint venture will install 106.9 megawatts of solar by 2017 as part of contracts awarded by the Brazilian Energy Commercialization Authority, Camara Comercializadora de Energia Electrica (CCEE). The contracts were awarded in the 2014 Reserve Supply Auction (2014 LER), the first renewable energy auction in Brazil to specify a need for solar power plant capacity.

SunEdison will supply solar modules and trackers for the projects, to be assembled in Brazil, and solar plant construction will be financed by the Brazilian Development Bank (BNDES). This supply agreement guarantees access to SunEdison's world class technology at competitive pricing while mitigating supply and exchange rate risks.

SunEdison and Renova fully support the development of solar energy in Brazil, a country that has fully embraced renewable energy sources. Brazil recently adopted a full regulatory framework for solar energy, and is making great strides towards incorporating solar energy as a definitive part of the country's energy supply.

"Renova's joint venture with SunEdison positions us as the best entity to serve the needs of the Brazilian renewable energy market," said Mathias Becker, President of Renova. "This opportunity to enter the solar energy market has been two years in the making, and we're excited to see the tremendous support from the Brazilian local and state authorities in developing this and other opportunities for utility scale solar."

"We are proud to partner with Renova, the most innovative and respected renewable energy company in Brazil," said Jose Perez, SunEdison president for EMEA and Latin America. "Aligning the best partners, financiers, and products in a joint venture like this ensures cost competitive, clean energy for the local utility. This agreement reinforces our leading position in Latin America."