Canadian Solar Inc. and SunEdison Power Canada, a unit of MEMC Electronic Materials, completed a purchase and sale transaction wherein Canadian Solar Solutions Inc. has acquired a majority interest in two utility-scale solar power projects in Ontario with a total capacity of about 24 MW.
Subject to certain contractual conditions, Canadian Solar has the ability to complete a purchase of two additional utility-scale solar power projects in Ontario with a total capacity of about 22.5 MW, and an option to purchase a fifth solar project at a later date from SunEdison.
Each of the five solar power projects was awarded a 20-year power purchase contract (a "FIT Contract") by the Ontario Power Authority under Ontario's Feed-In-Tariff Program.
The two projects purchased have each received Renewable Energy Approvals and are expected to commence construction in early 2013 and be fully operational by late 2013. The remaining solar energy projects are in the advanced permitting stage and are expected to commence construction in early to mid-2013 and be fully operational by late 2013 and early 2014.
The aggregate transaction price is about $38 million payable in accordance with certain milestones. The completion of the transaction also brings a settlement to litigation proceedings between Canadian Solar and SunEdison commenced in the Ontario courts in October 2011.
Ontario's FIT program for renewable energy generation is a cornerstone of the province's Green Energy Act. Under the program, participants are paid a fixed-price for the electricity they generate over a 20-year contract period.