Canadian Solar sells two PV power plants to Shenzhen Energy for $99.8 million

CSI New Energy Holding Co.,Ltd, the wholly-owned subsidiary of Chinese solar manufacturer and developer Canadian Solar, has completed the sale of two power plants in China with combined capacity of around 69.5 MWp to Shenzhen Energy Nanjing Holding Co.,Ltd, a subsidiary of Shenzhen Energy Group Co.,Ltd.

The transaction, valued at approximately $99.8 million, was closed in March 2017.

“We are pleased to have closed the sale of two additional solar power plants in China to Shenzhen Energy,” said Shawn Qu, Chairman and CEO of Canadian Solar. “We are well on track to monetize our operating solar power plants in China and other countries. Shenzhen Energy is an important strategic partner of Canadian Solar and we look forward to further expanding our strong partnership with them for more opportunities in the future.”

The recently released 2016 financial performance figures have shown that Canadian Solar’s bottom line was hurt by record-low module prices despite record shipments and growth of its late-stage project pipeline beyond 2.1GWp, including 400 MW in China.

Furthermore, the company’s revenues are likely to be hit by the new import duty rates applied to imports to the U.S. from China.

Fortunately, the Chinese Tier 1 PV manufacturer’s downstream sector is showing itself to be a safe heaven with as much as 1,195.5 MW of solar power plants in the company’s ownership as of February 2017, boasting a resale value of $1.6 billion.