Canadian Solar (NASDAQ: CSIQ) has completed the acquisition of Recurrent Energy LLC, a leading North American solar energy developer, from Sharp Corp.
Canadian Solar noted in a March 31 statement that the acquisition of Recurrent has increased Canadian Solar’s total solar project pipeline by approximately 4.0 GW to a total of 8.5 GW, including an increase in its late-stage project pipeline by approximately 1.0 GW to 2.4 GW. Recurrent’s seven late-stage projects totalling approximately 1.0 GW are located in California and Texas and are expected to be built and connected to the grid prior to the Investment Tax Credit (ITC) expiration at the end of 2016.
Recurrent’s seven late-stage projects have long-term power purchase agreements with investment grade counterparties, and are expected to generate significant US dollar denominated cash flow after completion, serving as the cornerstone for the launch of Canadian Solar’s own “Yield-Co” in the future.
With the closing of the transaction on March 30, David Brochu has been appointed Recurrent’s new Chief Executive Officer to replace Arno Harris. Michael Metzner, Recurrent’s Chief Financial Officer, is also stepping down. This management transition had been planned in advance.
Brochu previously served as Recurrent Energy’s Chief Operating Officer, a position he assumed in June 2014. Before that, Brochu served as Recurrent Energy’s Senior Vice President of Development, where he oversaw all development activities, including the build out of more than 315 MW of solar photovoltaic (PV) projects in two years. Brochu was previously President and CEO of UPC Solar, a Chicago-based solar PV developer with a pipeline of projects in Ontario, Canada and the United States, which Recurrent Energy acquired in 2009.
“I am honored to lead this exceptional team, with our new parent Canadian Solar, as we further strengthen our position in North America’s solar energy market,” said Brochu. “We look forward to transitioning our business model to own and operate assets, as we embark on construction of more than 1 GW of solar PV projects over the next two years.”
“With the acquisition of Recurrent Energy our significantly expanded, globally diverse project pipeline places Canadian Solar firmly among the leading global solar energy companies,” said Dr. Shawn Qu, Canadian Solar Chairman and Chief Executive Officer. “We believe that with David’s leadership and experience at Recurrent, we can continue to build on our proven solar energy development track record to create lasting value for our shareholders.”
Founded in 2001 in Canada, Canadian Solar has a geographically diversified pipeline of utility-scale solar power projects. In the past 14 years, Canadian Solar has successfully deployed over 8 GW of premium quality modules in over 70 countries around the world.
Sharp Corp. is a worldwide developer of innovative products and core technologies. As a leader in liquid crystal displays (LCDs) and digital technologies, Sharp offers one of the broadest and most advanced lines of consumer electronics, information products and electronic components, while also creating new network businesses.