Recurrent Energy, a subsidiary of Canadian Solar, has signed a partnership agreement with Southern Power, a subsidiary of Southern Company. Under terms of the agreement, Southern Power will acquire controlling interest in the 157MWac (212MWp) Roserock solar PV project in West Texas developed by Recurrent Energy.
The Roserock solar PV project is one of the largest renewable portfolios in the Americas, and it also marks both parties’ second partnership agreement as well as Southern Power’s first solar acquisition in Texas. After the transaction, Southern Power will own 51% of the equity in the equity in the solar project, while Canadian Solar will retain 49% ownership and contribute its share of the investment required to complete the construction of the project. Canadian Solar has financed through a construction and back-leveraged loan facility with a syndicate of five banks for the project development.
"Southern Power's first solar project in Texas helps further the company's robust wholesale business and further expands our solar footprint," said Southern Power President and CEO Oscar C. Harper. "With strategic acquisitions nationally, the continued development of industry-leading assets aligns with our company's low-risk strategy and enhances one of America's largest renewable portfolios."
The facility will consist of approximately 700,000 Canadian Solar CS6X-P photovoltaic solar modules, mounted on single axis trackers. The facility layout was developed in cooperation with mineral operator Apache Corporation, and the EPC service is provided by McCarthy Building Companies. The project is scheduled to be completed and to enter commercial operation in the fourth quarter of 2016. The electricity and associated renewable energy credits generated by the facility will be sold under a 20-year power purchase agreement with Austin Energy.
"Cost-competitive, large-scale solar power has enormous potential in Texas," said Canadian Solar Inc. Chairman and CEO Shawn Qu. "The Roserock project and Recurrent Energy's solar project pipeline in the state are each important steps forward as Texas approaches the more than 13GW of solar that has been forecasted across the state."