The financing will be supplied to Canadian Solar by the Manufacturers Life Insurance Company for the project situated in the counties of Stormont, Dundas, and Glengarry that reside in the North Dundas township. The plant itself has a capacity of 10 MW with connection expected in the next few months. Following commercial operation, the plant will be acquired by Concord Green Energy.
Dr. Shawn Qu, chairman and CEO of Canadian Solar, said, "Canadian Solar’s scale and track record of both execution and quality continues to help attract both world-class financial partners, like the Manufacturers Life Insurance Company, and sought after end buyers, like Concord. We are now firmly established as one of the power industry’s fastest growing companies, with one of the largest global project development pipelines, spanning Canada, the U.S., China, Japan, and other developing markets.
The Canadian province of Ontario has become something of a hotbed for the solar industry with Canadian Solar last week selling its Little Creek plant to BluEarth Renewables in a deal worth CAD $53m. And, in December last year, the company sold its 10 MW Mississippi Mills plant in Ontario to TransCanada in a deal worth CAD $61m. That plant was the fourth of nine such plants being built for TransCanada in a venture that will yield a total capacity of 86 MW. The first three plants, located in Brockville and Burritts Rapids, have already been sold to TransCanada in the beginning of a deal worth a reported CAD $470 million.
The growth of Ontarios power industry can be attributed to the provinces attitudes towards renewable energy. Last year, the Ontario Power Authority predicted that nearly half of the provinces energy would come from renewables by 2025. OPAs Long Term Energy Plan extended the phasing-in of renewable energy sources by three years. The current proportion of energy supplied through renewables in Ontario is 28%. This is expected to have risen to 46% by 2025.
Ontario Power Authority, under Ontario’s Feed-In-Tariff Program, awarded the North Dundas project a two-decade power purchase contract. Bowmont Capital and Advisory acted as the financial adviser to Concord.