Recurrent Energy, a wholly owned subsidiary of Canadian Solar Inc., and Italy-based Falck Renewables S.p.A. have announced the closing of the sale of 99% of the partnership that owns the Class B membership interest in the 92 MW IS-42 solar project in North Carolina As previously reported, the deal represents Falck’s entrance into the U.S. solar PV market.
Falck Renewables indirectly acquired 99% of the interests through its wholly owned subsidiary Falck Renewables IS 42 LLC for an all-cash outlay of approximately $43 million. In April, debt and tax equity financing for the project was secured from Prudential Capital Group and U.S. Bancorp Community Development Corporation.
The North Carolina project, which reached commercial operation at the end of September, is delivering electricity to Duke Energy Progress under a power purchase agreement. Recurrent Energy is providing asset management services to the project, with DEPCOM Power serving as the operations and maintenance contractor. DEPCOM also provided EPC services to the project.
“The closing of our first deal in the U.S. energy market represents a major milestone for our team, who has been working relentlessly from the beginning of the year on strategic geographic expansion,” says Toni Volpe, CEO of Falck Renewables. “Recurrent Energy has been an outstanding partner on our first opportunity to grow our assets outside Europe.”
“The IS-42 project is Recurrent Energy’s first solar project in the North Carolina market and another example of the company’s ability to grow its U.S. footprint,” says Dr. Shawn Qu, chairman and CEO of Canadian Solar. “We are very pleased to partner with Falck Renewables on their first project in the U.S. and look forward to continuing our collaboration in the U.S. and other markets.”
Cornerstone Financial Advisors LLC advised Falck Renewables on the transaction, with CohnReznick Capital acting as an advisor to Canadian Solar and Recurrent Energy.