Canadian Solar’s subsidiary Recurrent Energy has signed a partnership agreement with Southern Company’s subsidiary Southern Power over a 157 MW Texas solar project.
The two parent companies announced on Monday that their subsidiaries had signed the partnership agreement over the 157 MW Roserock solar facility in Texas. Southern Company’s subsidiary Southern Power will take controlling interest of the project, which is currently under construction by Recurrent Energy.
“Southern Power’s first solar project in Texas helps further the company’s robust wholesale business and further expands our solar footprint,” said Southern Power President and CEO Oscar C. Harper. “With strategic acquisitions nationally, the continued development of industry-leading assets aligns with our company’s low-risk strategy and enhances one of America’s largest renewable portfolios.”
The 157 MW project will be the latest addition to Southern Power’s portfolio of renewable energy projects — one of the largest in North America — and upon expected completion in the fourth quarter of 2016 will provide electricity to Austin Energy under a 20-year Power Purchase Agreement.
The two companies made the announcement on the same day that Canadian Solar revealed that Recurrent Energy had secured debt financing totaling approximately $275 million from a syndicate of five banks — KeyBank, Rabobank, Santander, NORD/LB, and CIT. Under the terms of the acquisition, Canadian Solar will retain 49% ownership of the project, and will contribute its share of the investment required to complete the construction of the project — the aforementioned debt financing.
“This top tier group of financiers’ attraction to the Roserock solar project is a clear indication that large-scale solar can compete and succeed in competitive energy markets like Texas,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. “This agreement is a testament to our broader team’s ability to deliver bankable solar projects with strong fundamentals.”
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