TransCanada acquires project under $470m solar deal with Canadian Solar

TransCanada, a renewable energy company, has executed the acquisition of first solar project under its proposed $470m project deal with Canadian Solar Solutions.

The portfolio includes a total of nine solar plants located in Ontario with consolidated power capacity of 86MW.

TransCanada entered into a purchased agreement with Canadian Solar for the proposed projects earlier in December 2011.

As per the terms of the agreement, Canadian Solar was mandated to develop each of the nine solar projects using their photovoltaic panels, which will be acquired by TransCanada following their commercial commencement.

Commenting on the move, TransCanada president and chief executive officer Russ Girling said that the company is pleased to have completed the acquisition of first of nine solar power facilities in its efforts to expand emission-less portfolio, besides modernising Ontario’s power facilities.

"One-third of the power we provide to North American consumers today comes from carbon-free energy sources and, as our solar facilities begin to come online, we are able to provide more diversity to our electricity supply mix," added Girling.

Remaining eight solar projects are expected to commence operations by 2014-end.

Ontario Power Authority, meanwhile, has secured a line of 20-year power purchase agreements to procure power output from these projects.

TransCanada claims that the company has invested nearly $5bn in securing emission-less energy sources, such as a wind farm in New England and its thirteen hydro power facilities in New Hampshire, Massachusetts and Vermont along with solar and wind developments in Canada.

Overall, the company owns or has stakes in over 11,800MW of power generation in Canada and the US.