Recurrent Energy LLC, a wholly owned subsidiary of Canadian Solar, has finalized a transaction with PKA, one of Denmark’s largest pension service providers, for interests in two solar photovoltaic projects in California.
In a deal valued around $307 million, PKA will acquire Canadian Solar’s 49% passive equity stake in the Garland and Tranquillity solar facilities. The Tranquillity and Garland projects are located in Fresno and Kern counties, respectively, and together power approximately 100,000 homes.
The transaction represents PKA’s first solar investment.
“At PKA, we are strongly committed to investing in a greener and more sustainable future while securing good returns for our members. Therefore, we are delighted to partner with Canadian Solar and Recurrent Energy and add yet another green energy investment to our portfolio,” says Peter Damgaard Jensen, CEO of PKA. “This is our first direct investment in solar energy, and it is an important addition to our investments in wind energy and biomass. By 2020, our ambition is to have 10 percent of our total investments allocated to climate-related projects equivalent to 30 billion Danish kroner.”
“As more pension funds find value in utility-scale solar, we are proud to partner with PKA to build upon its energy investments,” adds Shawn Qu, chairman and CEO of Canadian Solar.
The two projects, developed by Recurrent Energy, reached commercial operations in 2016 with long-term power purchase agreements in place. Southern Power, through Southern Power Renewable Partnerships LLC, owns the 51% majority stake. Southern Power will continue to provide asset management services on both projects.