Canadian Solar Inc., one of the global solar power companies, announced on October 3rd that its subsidiary, Canadian Solar Solutions Inc., entered into an agreement with a fund managed by BlackRock, whereby BlackRock acquired from Canadian Solar two utility-scale solar power plants totaling 20MW (AC) on September 30th, 2013 at a valuation comparable to other recent project sales completed by Canadian Solar on a per megawatt basis in the Ontario market.
Under the agreement, the two utility-scale solar power plants purchased by BlackRock are located in Demorestville and Odessa, Ontario, Canada. Construction started in the first quarter and third quarter of 2013, with commercial operation expected in the fourth quarter of 2013 and the second quarter of 2014, respectively. Canadian Solar is providing turnkey engineering, procurement and construction ("EPC") services to complete the projects and will provide operations and maintenance ("O&M") services after completion.
"We are proud to partner with BlackRock, a globally renowned institution, on these showcase utility-scale solar power plants," commented Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar Inc. "This transaction with one of the leading global infrastructure investors underscores the quality of our solar power project pipeline, and further demonstrates the momentum we continue to gain in our business strategy. Our team has worked tirelessly over the past few years to build out our pipeline in key low risk markets worldwide, including Canada, the U.S., and Japan, as well as in fast growing emerging markets such as China. We believe that this transaction demonstrates that we are well positioned with a global brand, a track record of success delivering bankable solar power solutions, as well as strong partner relationships to continue to execute on our vision of establishing Canadian Solar as a leading provider of solar power total solutions on a global basis."
Jim Barry, Managing Director at BlackRock, commented: "We are pleased to have invested in the Canadian solar energy sector and in particular the projects in Demorestville and Odessa. We look forward to developing our relationship with such a high quality asset developer as Canadian Solar."
The two utility-scale solar power plants are expected to include approximately 95,890 Canadian Solar CS6X modules, which are manufactured with uncompromised quality, durability, performance and value. In addition, the power plants will power approximately 3,340 homes, and will provide emissions free energy to Ontarians over their 20-year operational period covered under the Ontario Power Authority contracts.