Canadian Solar Inc. says it has completed the sale of Yamaguchi Shin Mine, a 56.3 MW operational solar power plant in the Yamaguchi Prefecture in Japan.
Hana Financial Investment, a subsidiary of Hana Financial Group, acquired the solar power plant for an enterprise value of approximately $205 million. Canadian Solar expects to recognize the revenue from the transaction in the first quarter of 2020.
This sale was originally planned to close in the fourth quarter of 2019 but was delayed due to regulatory and contractual obligations required to be met prior to closing the transaction.
Yamaguchi Shin Mine reached commercial operation in May 2018 and is powered by Canadian Solar modules. The electricity generated is being purchased by Chugoku Electric Power Co. Inc. at a rate of $0.32 per kWh for 20 years.
Canadian Solar will continue to provide asset management as well as operational and maintenance services for the plant after the transaction. Additionally, a five-year profit-sharing agreement has been put in place, enabling Canadian Solar to secure additional revenue after the sale should the power plant outperform agreed-upon metrics.
“Canadian Solar is excited to announce the completion of the sale of our Shin Mine project. This transaction structure ensures that we capture stable, long-term revenue streams for our asset management and operations and maintenance services,” says Shawn Qu, chairman and CEO at Canadian Solar.
“We expect to grow this business as we work to enhance and retain a greater share of the value creation throughout the life cycle of solar power plants,” he adds.
Photo: The Yamaguchi Shin Mine solar project
