Canadian Solar Inc., one of the world's largest solar power companies, today announced that it has entered into binding contracts to sell interests in three solar farms in Queensland, Australia, with an aggregate 117 MWp of capacity to Foresight Solar Fund Limited ("FSFL").
The portfolio consists of Longreach Solar Farm (17 MWp), Oakey 1 Solar Farm (30 MWp) and Oakey 2 Solar Farm (70 MWp) with FSFL acquiring 49% interests in each of Longreach and Oakey 1, and a 100% interest in Oakey 2.
Two of the three solar farms (Oakey 1 and Longreach) hold 20-year offtake agreements with the Queensland Government and are under construction with connection to the grid expected in March and September 2018 respectively. Oakey 2 solar farm is expected to connect to the grid in October 2018 and will benefit from the sale of power and large-scale generation certificates ("LGCs") under the Renewable Energy Target regulatory framework.
Both Oakey 1 and Longreach have been funded to date by equity from Canadian Solar, grants from the Australian Renewable Energy Agency ("ARENA"), and senior debt from the Clean Energy Finance Corporation ("CEFC") and Bank of Tokyo-Mitsubishi UFJ.
The completion of the acquisitions is subject to certain conditions being met including consents from relevant stakeholders.
"We are pleased to have worked with FSFL and their team on this milestone transaction. Canadian Solar is very well positioned in Australia with an 800+MW pipeline of early to late-stage developments and these projects will directly contribute to the Federal Government's Renewable Energy Target and State Government initiatives in generating affordable clean energy" commented Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar.
Ricardo Pineiro, Partner, Foresight Group said: "We are delighted to have made this solar acquisition in Australia on behalf of FSFL. We have enjoyed working closely with Canadian Solar, with whom we look forward to delivering a strong pipeline of future energy projects both in Australia and other international markets."
Source: Canadian Solar
Date: Oct 19, 2017