Canadian Solar Inc (NASDAQ: CSIQ) has agreed to sell interests in three solar farms in Queensland, Australia with 117 megawatt peak of capacity to Foresight Solar Fund, a U.K. infrastructure and private equity firm. No financial terms were released for the deal, which will see Foresight acquire 49 percent stakes in Longreach Solar Farm and Oakey 1 Solar Farm, and 100 percent of Oakey 2 Solar Farm. All three projects are expected to connect to the grid in 2018. Based in Guelph, Ontario, Canadian Solar is a maker of solar photovoltaic modules and a provider of solar energy solutions.
Canadian Solar Enters Binding Contracts for the Sale of Three Solar Farms Totalling 117 MWp in Queensland, Australia
GUELPH, Ontario, Oct. 16, 2017 /PRNewswire/ — Canadian Solar Inc. (the “Company”, or “Canadian Solar”) (NASDAQ: CSIQ), one of the world’s largest solar power companies, today announced that it has entered into binding contracts to sell interests in three solar farms in Queensland, Australia, with an aggregate 117 MWp of capacity to Foresight Solar Fund Limited (“FSFL”).
The portfolio consists of Longreach Solar Farm (17 MWp), Oakey 1 Solar Farm (30 MWp) and Oakey 2 Solar Farm (70 MWp) with FSFL acquiring 49% interests in each of Longreach and Oakey 1, and a 100% interest in Oakey 2.
Two of the three solar farms (Oakey 1 and Longreach) hold 20-year offtake agreements with the Queensland Government and are under construction with connection to the grid expected in March and September 2018 respectively. Oakey 2 solar farm is expected to connect to the grid in October 2018 and will benefit from the sale of power and large-scale generation certificates (“LGCs”) under the Renewable Energy Target regulatory framework.
Both Oakey 1 and Longreach have been funded to date by equity from Canadian Solar, grants from the Australian Renewable Energy Agency (“ARENA”), and senior debt from the Clean Energy Finance Corporation (“CEFC”) and Bank of Tokyo-Mitsubishi UFJ.
The completion of the acquisitions is subject to certain conditions being met including consents from relevant stakeholders.
“We are pleased to have worked with FSFL and their team on this milestone transaction. Canadian Solar is very well positioned in Australia with an 800+MW pipeline of early to late-stage developments and these projects will directly contribute to the Federal Government’s Renewable Energy Target and State Government initiatives in generating affordable clean energy” commented Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar.
Ricardo Pineiro, Partner, Foresight Group said: “We are delighted to have made this solar acquisition in Australia on behalf of FSFL. We have enjoyed working closely with Canadian Solar, with whom we look forward to delivering a strong pipeline of future energy projects both in Australia and other international markets.”
About Foresight Group LLP
Foresight is a leading independent infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 30 years. Foresight has £2.7 billion (A$4.6 billion) of Assets Under Management across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs). As a global leading solar infrastructure investment manager, Foresight currently manages more than £1.6 billion (A$2.7 billion) in over 100 operating Photovoltaic (“PV”) plants with a generating capacity of c. 1.2GW in the UK, Southern Europe, Australia and North America. In Bioenergy, Foresight has mobilised £900m of capital investment into 31 waste projects, which when fully operational will have a waste processing capacity of 1.8 million tonnes per annum, diverting some 1 million tonnes of waste from landfill every year and generating 134MW of clean energy, saving 750,000 tonnes of CO2 emissions every year. Foresight manages the A$200 million Australian Bioenergy Fund (“ABF”) which targets investments ranging from A$2 million to A$50 million into energy from waste projects across the continent backed by a cornerstone investment from the CEFC. Foresight Group is headquartered in London, with international offices in Sydney, Rome and San Francisco with regional UK offices in Nottingham, Manchester and Guernsey. www.foresightgroup.eu
About Canadian Solar Inc.
Founded in 2001 in Canada, Canadian Solar is one of the world’s largest and foremost solar power companies. As a leading manufacturer of solar photovoltaic modules and a provider of solar energy solutions, Canadian Solar has a geographically diversified pipeline of utility-scale power projects in various stages of development. In the past 16 years, Canadian Solar has successfully delivered over 22 GW of premium quality modules to over 100 countries around the world. Furthermore, Canadian Solar is one of the most bankable companies in the solar industry, having been publically listed on NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit http://www.canadiansolar.com.
Photo courtesy of Canadian Solar Inc