North American infrastructure developer TransCanada is purchasing nine Ontario solar projects from Canadian Solar for around $470m.
Once constructed, the plants will have a combined capacity of 86MW. Under terms of the agreement, Canadian Solar will build the systems with TransCanada officially acquiring each site once it is in commercial operation, which is expected to happen between late 2012 and the middle of 2013.
The developments are all supported by 20-year power purchase agreements with the Ontario Power Authority.
Russ Girling, president and CEO of TransCanada, said, 'The addition of these solar projects allows us to expand and add to our diverse power generating portfolio where a third of the power we own, or have interests in, comes from alternative or renewable energy sources. Upon close of this acquisition, this low-risk investment is expected to be immediately accretive to earnings and cash flow.'