TransCanada Corp. (TSX: TRP) (NYSE: TRP) has completed the acquisition of the first of nine Ontario solar power facilities from Canadian Solar Solutions Inc.
The combined capacity of the nine projects is 86 MW and the cost of the portfolio will be approximately C$470m, the company said in a July 2 announcement.
TransCanada anticipates the remaining eight projects will come into service by the end of 2014. They will complement TransCanada’s existing operations in Ontario where it has become the largest independent power producer in the province. The energy produced from these projects will be sold to the Ontario Power Authority under a series of 20-year power purchase agreements.
“We are pleased that we have now acquired the first of nine solar power facilities as we continue to expand our emission-less portfolio and help modernize and transform Ontario’s power facilities,” said Russ Girling, TransCanada’s president and CEO. “One-third of the power we provide to North American consumers today comes from carbon-free energy sources and, as our solar facilities begin to come online, we are able to provide more diversity to our electricity supply mix.”
Canadian Solar Inc. (NASDAQ: CSIQ) said that subsidiary Canadian Solar Solutions has closed the sale of Brockville 1, a 10-MW (AC) solar plant valued at over C$55m, to TransCanada.
“We are delighted to close the sale of our first project with TransCanada, one of North America’s most successful energy infrastructure companies, which has chosen to partner with Canadian Solar to expand their emission-less energy portfolio and expand into the solar power generation space,” said Shawn Qu, Chairman and CEO of Canadian Solar, in a July 2 statement. “This transaction represents an important milestone for Canadian Solar, as it puts us on track to target 50% of our revenue in 2013 from our total solutions business, and to return the company to profitability for the full fiscal year.”
The Brockville 1 10-MW (AC) solar plant is located in the city of Brockville in Eastern Ontario and is the first of nine solar power plants totaling 86 MW (AC) that Canadian Solar Solutions has agreed to build and sell to TransCanada for about C$470m. Canadian Solar Solutions will provide turnkey engineering, procurement and construction services to all the projects. All solar PV modules used in the portfolio are manufactured at Canadian Solar’s facility in Guelph, Ontario.
To date, TransCanada said it has invested over C$5bn in emission-less energy sources, including the largest wind farm in New England, its thirteen hydropower facilities in New Hampshire, Massachusetts and Vermont, and solar and wind developments in Canada. TransCanada is a partner in Bruce Power, Canada’s first private nuclear generator that currently produces 6,300 MW of in Ontario. TransCanada also specializes in building highly efficient natural gas-fired power plants that are helping North America’s transition to a less carbon-intensive electricity supply mix.
TransCanada said continues to progress a C$26bn portfolio of commercially secured projects and advance other value creating opportunities in its energy, oil and natural gas lines of business in Canada, the U.S. and Mexico.
Canadian Solar is one of the world’s largest solar companies. As a leading vertically integrated provider of ingots, wafers, solar cells, solar modules and other solar applications, Canadian Solar designs, manufactures and delivers solar products and solar system solutions for on-grid and off-grid use to customers worldwide. With operations in North America, Europe, Australia and Asia, Canadian Solar provides premium quality, cost-effective and environmentally friendly solar solutions to support global, sustainable development.