Sun Edison Buying First Wind Scam

Most people know very little about the true economics in the solar and wind industry. Even less understand the cryptic disclosures in an SEC filing of reports from FERC. Yet the financial inventors are brilliant in concealing the simple business model that is supposed to generate earning from real economic activity. Let’s be generous and report on the public relations announcement, 5 Slides That Show Why SunEdison Bought First Wind. Reading such glowing projections might attract investors into the SunEdison, TerraForm Power Up Solar ETFs.

“SunEdison is among the largest holdings in both the Guggenheim Solar ETFs (TAN ) and the Market Vectors Solar ETF (KWT ), which climbed 5.1% and 3.8% respectively.

These two solar ETFs are alone in giving meaningful weight to TerraForm, SunEdison’s partner “yieldco” that went public in July, according to research firm XTF.”

Are you ready for some government and private sector newspeak? Note the following appears on the website of NREL - a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC. - A Deeper Look into Yieldco Structuring.

“A yieldco is a dividend growth-oriented public company, created by a parent company (e.g., SunEdison), that bundles renewable and/or conventional long-term contracted operating assets in order to generate predictable cash flows. Yieldcos allocate cash available for distribution (CAFD) each year or quarter to shareholders in the form of dividends. This investment can be attractive to shareholders because they can expect low-risk returns (or yields) that are projected to increase over time.”

Surely you got that these “yieldco” are even better than derivatives, RIGHT???

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