First Solar sells canadian power plants to GE-Alterra partnership
Tuesday, Aug 27, 2013
First Solar, Inc. (Nasdaq: FSLR) announced today that it has sold a collection of solar projects in Ontario, Canada, totaling 50 megawatts (MW) AC to an investment partnership led by GE (NYSE: GE) unit GE Energy Financial Services. Terms were not disclosed.
“In addition to providing clean electricity, the projects have provided meaningful employment and local economic benefits, as well as contribute to the safe and efficient operation of the local utility system.”
It is the first project transaction between First Solar and GE since their solar technology and commercial partnership was announced Aug. 6.
The ABW Partnership, originally announced in 2011, consists of majority owner GE Energy Financial Services and Alterra Power Corporation, which made an equity contribution and will serve as the projects’ managing partner. The ABW Partnership raised debt for the acquisition, with The Manufacturers Life Insurance Company serving as agent and lead arranger. The debt syndicate consists of The Great-West Life Assurance Company, Sun Life Assurance Company of Canada and Caisse de dépôt et placement du Québec.
First Solar has completed construction of the power plants – Amherstburg (10MWAC), Belmont (20MWAC) and Walpole (20MWAC) – and has commissioned and energized them so they are providing power to the grid. First Solar will provide operations and maintenance services under long-term contracts. Output of the power plants will be sold to Ontario Power Authority under its Renewable Energy Standard Offer Program (RESOP), with 20-year power purchase agreements.
“First Solar is proud to contribute to Ontario’s renewable energy objectives,” said Tim Rebhorn, First Solar’s Senior Vice President of Business Development – Americas. “In addition to providing clean electricity, the projects have provided meaningful employment and local economic benefits, as well as contribute to the safe and efficient operation of the local utility system.”
For its part, GE Energy Financial Services said the Ontario projects contribute to its cumulative one-gigawatt, $1.5-billion solar investment portfolio, comprising 50 installations, including several with First Solar in North America and Australia.
Source: Business Wire