June 5, 2013 - Canadian Solar Inc. today announced that its subsidiary, Canadian Solar Solutions Inc., has entered into a sales agreement with a BluEarth Renewables Inc. subsidiary ("BluEarth"), whereby BluEarth will acquire from Canadian Solar four utility-scale solar power plants totaling 38.5MWac(53.9 MWdc) valued at over C$225.0 million ($217.2 million). CIBC World Markets acted as advisor to BluEarth in the transaction.
The four utility-scale solar power plants being purchased by BluEarth are located in Kawartha Lakes, Belleville, Beaverton and Napanee, Ontario, Canada. Construction on all four utility scale projects is expected to commence in 2013, with commercial operation expected in 2014. Canadian Solar will provide turnkey engineering, procurement and construction ("EPC") services for all four sites.
"At BluEarth we are focused on developing and operating a portfolio of energy projects that optimizes people, planet and profits," said Kent Brown, President & CEO of BluEarth. "These projects are a great fit with our existing renewable energy plants and projects, moving us closer to our goal of $1 billion of high-quality, long-term contracted renewable energy plants. We look forward to continuing our relationship with Canadian Solar both in the delivery of these high-quality projects and on potential future projects."
These four utility-scale solar power plants are designed to generate sufficient power for approximately 6,878 homes, and will provide emissions free energy to Ontarians over their 20-year operational period covered under the Ontario Power Authority contracts. In addition, the utility-scale solar power plants will include approximately 186,000 Canadian Solar CS6X high-performance modules, which have been formally tested and awarded international certifications validating the quality of the Company's products. The utility-scale solar power plants are expected to create more than 400 new jobs during the development and construction phases of all four solar projects.
"BluEarth's focus on promoting the responsible use of renewable resources is directly aligned with our goal of contributing to the growth of solar powered energy in Canada," said Dr. Shawn Qu, chairman and chief executive officer of Canadian Solar. "Development of these utility-scale solar power plants will contribute to job creation in the Ontario market during the construction phase, while also extending our position as a leading provider of solar energy solutions in Canada."
These four utility-scale solar plants being sold to BluEarth are part of Canadian Solar's pipeline in Ontario, Canada, of 29 projects equivalent to approximately 400MW (dc). The Company estimates that the resale value of its entire Ontario project pipeline, once built into grid-connected solar power plants and sold to investors, will exceed C$1.50 billion ($1.45 billion).