Canadian Solar Inc., one of the global solar power companies, announced on November 18th that its subsidiary, Canadian Solar Solutions Inc., has entered into a sales agreement with a fund managed by DIF ("DIF"), whereby DIF will acquire from Canadian Solar four utility-scale solar power plants located in Ontario, Canada, totaling 40 MWAC at a valuation comparable to other recent project sales completed by Canadian Solar on a per megawatt basis in the Ontario market. The agreement is subject to usual closing conditions, including the completion of financing for the construction of each solar plant which is being arranged with the participation of leading international banks.
Under the agreement, the four solar power plants, which include "BeamLight" in Georgina, "Gold Light" in Pefferlaw, "Illumination" in Scugog and "Glenarm" in Kawartha Lakes, Ontario, Canada, are expected to start construction in 2013 and 2014, with commercial operation expected in 2014. More than 400 jobs are expected to be created through the construction of the projects, which are expected to generate enough emissions-free energy upon completion to power approximately 7,000 homes.
Approximately 190,000 Canadian Solar CS6X high-performance modules will be installed in the four solar power plants. The high-performance modules have undergone rigorous formal inspections and testing, and have received prominent international quality certificates. Canadian Solar will provide turnkey engineering, procurement and construction services to build the projects and will provide operations and maintenance services after completion.
"DIF has a robust and forward looking vision for solar, with numerous successes worldwide," said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. "These four solar-power plants will further advance our shared goal of significantly contributing to the growth of solar powered energy and job creation in the Ontario market."
"Following investments in over 160MW of solar PV projects in Europe by DIF managed funds, DIF is pleased to announce its first renewable energy investment in North America. This investment is consistent with DIF's strategy to invest in quality assets that will provide stable cash flows to its investors, with proven technology suppliers, such as Canadian Solar. Having worked with Canadian Solar in Europe, this transaction highlights the benefits of working with international groups across different countries," said Paul Huebener, head of DIF in Canada.