Canadian Solar announces sale of 24 PV plants to Greencoat Capital LLP

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Canadian Solar has announced the sale of a 142 MWp solar portfolio to U.K. based Greencoat Solar II LP, a subsidiary of Greencoat Capital LLP.

The sale comprises 24 operational solar PV plants across England, Wales and Scotland. The hope is that the plants will provide what is called ‘inflation-linked’ solar power generation revenues for a period of 20 years under the U.K’s Renewable Obligation Certificate (ROC) and FIT schemes.

The 24 plants were valued at around $267.7 million, and what they have qualified as “net of distribution of $5.3 million” prior to closing.

Furthermore, the company has announced that the sale of the plants has “reduced non-recourse project debt” on the company’s balance sheet by around $172.2 million, with Canadian Solar expecting to use this sale to further bolster its balance sheet.

The 24 plants can generate around 142,000 MWh of solar PV per year, with the ability to power 46,000 homes while reducing CO2 emissions by 56,800 tons per year. Under the Community Interests Companies, three of the solar power plants will provide additional benefits to the community.

The deal consists of 272,000 Canadian Solar CS6P and CS6U modules, with the Canadian firm to provide operation and maintenance to all 24 power plants.

“We are delighted to work with Greencoat, a leading UK renewable infrastructure investment firm, on the sale of our solar asset portfolio. Our sizable operational portfolio creates an interesting investment platform for high quality solar asset growth in the UK,” commented Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar.

“This transaction demonstrates our continuing ability to monetize our assets effectively and maximize shareholder return. We are well positioned to capitalize on the appreciating pound sterling currency environment and look forward to partnering with Greencoat on future opportunities.”

pv magazine also recently reported that Canadian Solar recently acquired a 51% stake in project pipeline of five utility scale solar farms in New South Wales, Australia. The projects, which are at an early stage, were initiated by Netherlands-based Photon Energy NV. worth some 1.14 GW.

The projects are the 316 MW Gunning, 286 MW Suntop, 196 MW Maryvale, 178 MW Mumbil, and the 165 MW Bunnedah.