Recurrent Energy LLC, a wholly owned subsidiary of Canadian Solar Inc., has completed the sale of its 150 MW AC Mustang Two solar project to Solar Frontier Americas (SFA).
Located on 1,400 acres in Kings County, Calif., the Mustang Two project is expected to create approximately 400 jobs during peak construction. Recurrent will continue to manage the development of the project and ready it for construction, while SFA will finance and manage the construction of the project, which is slated to achieve commercial operation in 2020. It will then be operated by SFA’s growing independent power producer (IPP) business.
“With this important acquisition, SFA further expands its U.S. business to become an independent power producer, an owner of operating electric power facilities,” says Charles Pimentel, CEO of SFA’s IPP business unit. “We already have a substantial greenfield pipeline and are actively acquiring utility-scale projects and development assets to further scale our business.”
Once the project is operational, the generated energy will be split between two long-term power purchase agreements (PPAs): Peninsula Clean Energy (a community choice energy agency serving San Mateo County) is contracted to receive 100 MW AC, and the Modesto Irrigation District will acquire 50 MW AC. The combined energy generation from the two PPAs will power 37,500 homes with clean electricity.
