Korean Utility KEPCO Makes First Investment in Mexican Solar Market

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Canadian Solar Inc. has sold 49% interest in three solar photovoltaic projects in Mexico totaling 370 MWp (294 MW AC) to Korea Electric Power Corp. (KEPCO), South Korea’s largest electric utility, and Sprott Korea, a fund manager.

KEPCO and Sprott acquired the interests in the Horus (119 MWp), Tastiota (125 MWp) and El Mayo (126 MWp) projects located in the states of Aguascalientes and Sonora. Under the agreement, KEPCO and Sprott will acquire Canadian Solar’s remaining interest in the projects following their commercial operation date.

Canadian Solar developed the three projects and will supply the modules and manage the projects’ construction. Horus construction is under way, with completion expected in the second quarter of 2020; Tastiota and El Mayo are expected to be operational in the first quarter of 2021. Once operational, the projects are expected to generate 900 GWh annually.

The electricity generated will be sold under 15-year power purchase agreements for energy and capacity and 20-year agreements for Clean Energy Certificates awarded in November 2017 in the third government auction organized by CENACE. 

The transaction marks KEPCO and Sprott’s first investment in the solar market in Mexico and the second transaction with Canadian Solar following the acquisition of the Astoria, Astoria 2 and Barren Ridge projects in the U.S. in 2018.

“This high-quality solar portfolio is a strategic addition to our international renewable energy holdings and will allow us to further diversify our generation portfolio,” says KEPCO President and CEO JongKap Kim.

“This is the second sale of projects developed by Canadian Solar in Mexico and strengthens our position in this growing electricity market,” adds Dr. Shawn Qu, chairman and CEO of Canadian Solar. “We are pleased to have partnered again with KEPCO, a global energy leader, and financial investor like Sprott and look forward to continuing our successful collaboration.”

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