Canadian Solar to acquire Recurrent Energy for $265 million

Canadian Solar

Canadian Solar has joined hands with Sharp Corporation to acquire Recurrent Energy, a North American solar energy firm at a cost of nearly $265 million.

Through this acquisition, Canadian Solar will achieve a total solar project pipeline of around 4.0 GW to 8.5 GW with its late-stage project pipeline hitting approx. 1.0 GW to 2.4 GW.

At present, Recurrent owns 1.0 GW late-stage pipeline, signifying an estimated revenue opportunity of around $2.3 billion for Canadian Solar.

The transaction will ensure Canadian Solar’s position as a leading solar energy developer, with a globally diversified project pipeline.

In addition, this transaction will enhance the Company’s position for creating its own Yield-Co in future.

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So far, Canadian Solar’s total late-stage solar project pipeline was at 1.4 GWp, same as that in November 2014.

The company could not add much to the capacity despite the fact that during the fourth quarter of 2014, 100 MWp of projects were completed in Canada and U.S.

However, the company has succeeded in expanding its pipeline across several countries including Japan, UK and China.

In Canada, the backlog of owned as well as EPC contracted projects, which are to be commissioned in 2015 stands at 275 MWp, including the sold off Glenarm power plant.

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Last month, Canadian Solar initiated the sale of its 10 MW AC Glenarm solar power plant to an associate firm of DIF Infrastructure III (DIF).

The solar power plant is estimated to be valued around C$60 million or US$49 million.

In another development, Canadian Solar Solutions completed the sale of two 10 MW AC solar power plants, DiscoveryLight and FotoLight, to Renewable Energy Trust (RET) Ontario Holdings.

Valuation of the projects is comparable to other recent project sales completed by Canadian Solar on a per megawatt basis in the Ontario market, the company said in a statement.

The third 10 MW AC power plant (City Lights) is scheduled to begin commercial operation in the first quarter of 2015 with closing occurring post commercial operation.

Sabeena Wahid
[email protected]