The agreement gives Southern Power a controlling interest in the Roserock solar photovoltaic project in Texas. The 157.5 MWac/212 MWp project, developed by Recurrent Energy, is now under construction in West Texas.
Under the terms of the agreement, Southern Power will buy 51 percent of the equity in the solar power project. Canadian Solar will retain 49 percent ownership and contribute its share of the investment required to complete the construction of the project, which the company has financed through a construction and back-leveraged loan facility with a syndicate of five banks.
Projected to be one of the largest solar power plants in Texas when the Roserock solar project reaches commercial operation in late 2016, the facility is expected to generate enough energy to power more than 30,000 Texan homes. The electricity generated by the solar power plant will be delivered to Austin Energy pursuant to a 20-year power purchase agreement.
Roserock is being constructed on about 1,300 acres in Pecos County in West Texas, using about 700,000 Canadian Solar CS6X-P PV solar modules. McCarthy Building Companies serves as the provider of engineering, procurement and construction services for the project, which is estimated to create 500 local construction jobs. The facility layout was developed in cooperation with mineral operator Apache Corp.
This transaction represents Recurrent Energy's second partnership with Southern Power, which also holds a controlling interest in the Tranquillity solar facility in California.