Canadian Solar Inc. and SunEdison Power Canada Inc., a subsidiary of MEMC Electronic Materials Inc., have completed a purchase and sale transaction wherein Canadian Solar's direct subsidiary, Canadian Solar Solutions Inc., has acquired a majority interest in two utility-scale solar power projects in Ontario with a total capacity of approximately 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 approximately 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 by the Ontario Power Authority under Ontario's feed-in-tariff program.
The two projects purchased have each received Renewal 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 approximately C$37 million ($38 million), payable in accordance with certain milestones.