By Josh Beckerman
First Solar Inc. and SunPower Corp. are in talks to form a joint
"YieldCo," an entity that provides power under long-term contracts
and pays out much of its cash flow to shareholders.
The two solar-products companies have separately made statements
in the past about possible formation of YieldCos. Rival SunEdison
Inc. spun off its own YieldCo, TerraForm Power Inc., which had
strong demand when it went public in July.
In late trading, First Solar shares were up 10% and SunPower
rose 12%.
First Solar Chief Executive Jim Hughes said in November that the
company was "not prepared" to "pursue a listed yield vehicle at
this time."
NRG Energy Inc. was an early player in the YieldCo trend,
spinning off a mix of conventional power plants and wind and solar
farms as NRG Yield Inc.
Write to Josh Beckerman at josh.beckerman@wsj.com
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