TransCanada Corp. (TSX: TRP) (NYSE: TRP) has acquired two additional Ontario solar power facilities from Canadian Solar Solutions – the Brockville 2 and Burritts Rapids projects.
This deal follows the previously announced purchase of Brockville 1 as part of an agreement made in 2011 to acquire nine solar power facilities from Canadian Solar Solutions, TransCanada noted in an Oct. 2 statement.
The combined capacity of the nine projects is 86 MW. All nine projects have 20-year power purchase agreements with the Ontario Power Authority.
“This agreement further demonstrates our commitment to increasing the supply and availability of clean, renewable energy,” said Russ Girling, TransCanada’s president and CEO. “While our portfolio of solar, wind and other emission-less energy sources has expanded in recent years, we also recognize the U.S. Energy Information Administration predicts North America will continue to rely on natural gas and other fossil fuels for decades to come.”
Girling adds that TransCanada’s business relationship with Canadian Solar allows the company to continue to expand its energy capacity in Ontario and will add to a diverse power generating portfolio where a third of the power it owns, or has interests in, comes from emission-less or renewable energy sources.
To date, the company has invested in various emission-less energy sources, including the largest wind farm in New England and thirteen hydropower facilities in New Hampshire, Massachusetts and Vermont, as well as solar projects and Canada’s largest wind farm development in Quebec.
TransCanada is also a partner in Bruce Power, Canada’s first private nuclear generator that currently produces 6,200 MW of emission-free electricity 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 anticipates the remaining six solar 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.
Founded in 2001 in Canada, Canadian Solar is one of the world’s largest and foremost solar power companies. Canadian Solar has delivered more than 5 GW of premium quality solar modules to customers in over 70 countries.
Canadian Solar’s wholly owned subsidiary, Canadian Solar Solutions, did this sale, in a deal valued at C$95m (US$92.2m).
“We are delighted to announce the completion of the sale of these two projects, underscoring the success of our partnership with TransCanada, one of North America’s most successful energy infrastructure companies,” said Dr. Shawn Qu, Chairman and CEO of Canadian Solar Inc. “The Canadian Solar team has now taken several large solar power projects from the very initial stages of development all the way through design, engineering, construction and final sale to the end customer.”
The Brockville 2 facility totals 9 MW (AC) and is located in the city of Brockville in Eastern Ontario. The Burritts Rapids plant totals 7 MW (AC) and is located in the city of Ottawa in Eastern Ontario. These two projects are part of the nine solar power plant portfolio totaling 86 MW (AC) that Canadian Solar Solutions has agreed to build and sell to TransCanada for about C$470m. This transaction follows the previously announced closing of the sale of Brockville 1 to TransCanada on June 28.
TransCanada is a leading developer of North American energy infrastructure, including natural gas and oil pipelines, power generation and gas storage facilities. A growing independent power producer, TransCanada owns or has interests in over 11,800 MW of power generation in Canada and the United States.