Canadian Solar completes purchase of two solar power projects totaling 24 MW (DC) from SunEdison
Monday, Dec 31, 2012
TORONTO and GUELPH, Canada, Dec. 28, 2012 /PRNewswire-FirstCall/ -- Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ), one of the world's largest solar companies, and SunEdison Power Canada Inc. ("SunEdison"), a subsidiary of MEMC Electronic Materials, Inc., today announced that they have completed a purchase and sale transaction wherein Canadian Solar's direct subsidiary Canadian Solar Solutions Inc. has acquired a majority interest in two utility-scale solar power projects in Ontario with a total capacity of approximately 24 MW DC. Subject to certain contractual conditions, Canadian Solar has the ability to complete a purchase of two additional utility-scale solar power projects in Ontario with a total capacity of approximately 22.5 MW DC, and an option to purchase a fifth solar project at a later date from SunEdison. Each of the five solar power projects was awarded a 20-year power purchase contract (a "FIT Contract") by the Ontario Power Authority under Ontario's Feed-In-Tariff Program (FIT version 1.0). The two projects purchased have each received Renewal Energy Approvals and are expected to commence construction in early 2013 and be fully operational by late 2013. The remaining solar energy projects are in the advanced permitting stage and are expected to commence construction in early to mid-2013 and be fully operational by late 2013 and early 2014.
The aggregate transaction price is approximately C$37 million (US$ 38 million) payable in accordance with certain milestones. The completion of the transaction also brings a settlement to litigation proceedings between Canadian Solar and SunEdison commenced in the Ontario courts in October 2011.
"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."
About the Feed-in-Tariff Program (FIT)
Ontario's Feed-In-Tariff (FIT) program for renewable energy generation is a cornerstone of the province's Green Energy Act. Under the program, participants are paid a fixed-price for the electricity they generate over a 20 year contract period. For more information, visit http://fit.powerauthority.on.ca.
About Canadian Solar
Canadian Solar Inc. (NASDAQ: CSIQ) is one of the world's largest solar companies. As a leading vertically integrated provider of ingot, wafer, solar cell, solar module and other solar applications, Canadian Solar designs, manufactures and delivers solar products and solar system solutions for on-grid and off-grid use to customers worldwide. With operations in North America, Europe, Africa, Australia, and Asia, Canadian Solar provides premium quality, cost-effective and environmentally-friendly solar solutions to support global, sustainable development. For more information, please visit canadiansolar.com.
SunEdison is a global provider of solar-energy services. The company develops finances, installs and operates distributed power plants using proven photovoltaic technologies, delivering fully managed, and predictably priced solar energy services for its commercial, government and utility customers. In 2011 SunEdison interconnected approximately 300 Megawatts of solar throughout the world. For more information about SunEdison, please visit www.sunedison.com.
SOURCE Canadian Solar Inc.