Tuesday, December 20, 2011

TransCanada buys nine Ontario solar PV projects with combined capacity of 86 MW from Canadian Solar Inc. for $470 million CAD

Calgary, Alberta based TransCanada Corp., a major petroleum pipeline operator and power producer, has expanded its renewable energy business with a deal to buy nine solar PV projects in Ontario for $470 million CAD, the Canadian Press reported early this morning. All nine projects have 20 year power purchase agreements with the Ontario Power Authority.

“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,” Russ Girling, TransCanada’s president and chief executive officer, said before stock markets opened Tuesday. “Upon close of this acquisition, this low-risk investment is expected to be immediately accretive to earnings and cash flow.”

Under the agreement, each of the nine solar PV projects will be developed and built by Canadian Solar Inc. using their photovoltaic panels. Canadian Solar Inc. is one of the world’s largest solar PV module producers. TransCanada will purchase each project after it begins commercial operation and subject to certain milestones being met.

TransCanada expects the projects will come into service between late 2012 and mid-2013. TransCanada is now the largest independent power producer in Ontario.

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