Canadian Solar Inc. (NASDAQ: CSIQ) and SunEdison Power Canada Inc. stated last Friday that they’ve reached an agreement in which Canadian Solar Solutions Inc., a subsidiary of Canadian Solar, will get a majority interest in two utility-scale solar projects in Ontario. The combined capacity of the two projects is around 24 MW.
The deal will also allow Canadian Solar to buy two more Ontario solar projects with a combined capacity of around 22.5 MW and add a fifth later on from SunEdison, subject to conditions.
Each project comes with a 20-year power purchase contract under Ontario’s Feed-in-Tariff Program.
Canadian Solar is presently developing almost 260 MW in solar projects across Ontario, hoping to sell them for C$1.3 billion over the next one and a half years, CFO Michael Potter told Bloomberg.
The two projects Canadian Solar bought are from SunEdison’s subsidiary company, MEMC Electronic Materials Inc. Construction should begin early next year, and they will likely come online by the end of the year.
The rest are currently awaiting permissions approval, with construction expected to begin sometime in this year and full completion by late 2013 to early 2014.
Altogether, the deal is worth $38 million, and marks the conclusion of litigation between the two companies that began in October of last year.
From the Sacramento Bee:
“We are very pleased to announce this transaction with SunEdison which further demonstrates Canadian Solar’s ongoing investment and commitment to the Ontario solar energy market, and continues Canadian Solar’s growth of its global solar project portfolio and higher margin total solutions business,” said Dr. Shawn Qu, Chairman and Chief Executive Officer at Canadian Solar. “Each of these four solar projects will create and sustain green jobs in Ontario and will generate clean, renewable energy for decades to come.”
Canadian Solar has operations across North America, Europe, Africa, Australia, and Asia, making it one of the world’s largest solar companies. The company develops and provides ingots, wafers, solar cells, and other technologies related to solar power to both on- and off-grid customers.
SunEdison develops, finances, and performs installation of solar energy technologies and operates distributed power plants relying on photovoltaic solar technologies. The company focuses on commercial, government, and utility customers.
Canadian Solar was up 2.94% on Wednesday to $3.50.