SunEdison Inc. subsidiary TerraForm Power Inc. announced that it will buy 930 megawatts of wind power from farms in the United States and Canada for $2 billion from Invenergy Wind LLC. 

According to Reuters, seven contracted wind farms and Invenergy will retain 9.9 percent share in the U.S. assets, TerraForm announced on Monday. RTT News said that Invenergy will provide operation and maintenance services for the power plants

TerraForm announced that they plan to buy 460 megawatt of plants directly from Invenergy, the biggest independent wind power generator in the United States.

A new warehouse facility sponsored by SunEdison and third-party equity investors will acquire the remaining 470 megawatts, with assets expected dropping down to TerraForm in the future.

According to Market Watch, the finality of this transaction is dependent on the approval of the Federal Energy Commission and the Public Utility Commission of Texas. It is required to adhere to the standards and requirements under the Hart-Scott-Rodino Act, as well as other customary conditions.

Morgan Stanley acted as lead financial advisor to TerraForm Power. Citi Investor Group served as joint financial advisor and also acted as lead financing structuring agent. Goldman Sachs acted as exclusive financial advisor to Invenergy. Orrick acted as lead legal counsel to TerraForm Power.

The deal is expected to close by the fourth quarter of 2015.

TerraForm has raised its 2016 dividend target to $1.70 per share from $1.53. This represents a 26 percent increase from TerraForm's guidance this year. This transaction also enhances visibility of TerraForm's long-term growth trajectory. 

TerraForm experienced a rise in share at 3.5 percent to $38.86 in extended trading, while SunEdison's shares increased to 3.2 percent to $29.90.

TerraForm Power aims on changing how energy is transferred, generated, and consumed. This move may be very well one of the steps to promote the use of renewable energy in the U.S., which has been done to lessen the dependency on pollution-creating sources.