Recurrent Energy, a subsidiary of Canadian Solar, is constructing a 200MWac solar project “Garland Solar” in Kern County, California. In addition, the developer has entered into an agreement with Southern Power, owned by Southern Company, to sell 51% of the equity in the project.
Under the terms of the agreement, Southern Power will acquire 51% of the equity in the solar generation project. Canadian Solar will retain 49% ownership and contribute its share of the investment required to complete the construction of the project
The Garland project utilizes 800,000 Canadian Solar’s CS6X-P series polycrystalline PV modules mounted on single-axis tracking tables. The construction was started this month and is expected to be completed in the fourth quarter of 2016 with Signal Energy Constructor’s EPC services. When fully operational, the power generation of project will be enough for powering 450,000 local homes. Two multi-year power purchase agreements have been signed by Southern California Edison (SCE) for the electricity and associated renewable energy credits (RECs) generated by the facility.
Canadian Solar aims to connect up to 1.2GWp of solar power to the grid in the U.S. during 2016, said Shaw Qu, CEO and Chairman of Canadian Solar.
Financing
For the project construction, Canadian Solar has closed on a combined construction and term debt facility with a syndicate of five bank including NORD/LB, CIT, KeyBanc, Rabobank, and Santander. NORD/LB acts as the Coordinating Lead Arranger.
The five banks provide project-level construction debt, LC facilities and a back-leveraged term facility, totaling approximately US$480 million.
Cooperation
The interest transaction between Recurrent Energy and Southern Power marks the third venture of the two companies. Southern Power also holds a controlling interest in the 200MWac Tranquillity solar facility in California and the 157MWac Roserock solar facility in Texas, both developed by Recurrent Energy.
With Garland project, the partners now have cooperated in developing three jointly owned projects which reach over 550MW of generating capacity.
"Our solar expansion in California began in earnest with our acquisition of the Campo Verde solar project in 2013," explained Southern Power President and CEO Oscar C. Harper. "Since then, our strategic acquisitions – both in the state of California and nationally – have created one of America's largest renewable portfolios with more than 1,800 MW of generation in seven states."