Canadian Solar and Pensionskassernes Administration (PKA), one of Denmark’s largest pension service providers, announced Recurrent Energy, a wholly owned subsidiary of Canadian Solar, has finalized a transaction with PKA for its interests in two solar photovoltaic projects.
In a deal valued around $307 million, PKA will acquire Canadian Solar’s 49% passive equity stake in the Garland and Tranquillity solar facilities equivalent to 260 MW. The transaction is PKA’s first solar investment and was completed following an efficient sales process.
“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. 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% of our total investments allocated to climate related projects equivalent to 30 billion Danish kroner,” said Peter Damgaard Jensen, CEO of PKA.
“As more pension funds find value in utility-scale solar, we are proud to partner with PKA to build upon its energy investments,” said Shawn Qu, chairman and CEO of Canadian Solar. “The Recurrent Energy team continues to develop assets for world class investors that are focused on adding high quality assets to their portfolios. We will continue to partner with likeminded investors across our global pipeline of solar projects.”
The above two projects, developed by Recurrent Energy, reached commercial operation in 2016 with long-term power purchase agreements in place. Southern Power, a leading U.S. wholesale energy provider and subsidiary of Southern Company, through its majority owned subsidiary Southern Power Renewable Partnerships, owns the 51% majority stake. Southern Power will continue to provide asset management services on both projects.
The Tranquillity and Garland facilities are located in Fresno County and Kern County respectively, and together power approximately 100,000 homes. Additional project details are available at recurrentenergy.com/portfolio.
News item from Canadian Solar