Canadian Solar Inc. today announced that Recurrent Energy signed an agreement with Southern Power, giving Southern Power a controlling interest in the Garland solar photovoltaic (PV) project in California. The 200MW AC project, developed by Recurrent Energy, is currently under construction.
Under the terms of the agreement, Southern Power will acquire 51% of the equity in the solar generation project. Canadian Solar will retain 49% ownership and contribute its share of the investment required to complete the construction of the project, which the Company has financed through a construction and back-leveraged loan facility with a syndicate of five banks.
The Garland project, covering an area of approximately 2,000 acres in Kern County, will primarily utilize Canadian Solar CS6X-P photovoltaic solar modules mounted on single-axis tracking tables. The facility is expected to enter commercial operation in the fourth quarter of 2016 with Signal Energy Constructors as the provider of engineering, procurement, and construction services. The project is expected to create more than 300 construction jobs and, when completed, is expected to be capable of generating enough solar energy to meet the energy needs of approximately 45,000 homes. The electricity and associated renewable energy credits (RECs) generated by the facility will be sold to Southern California Edison (SCE) under long-term power purchase agreements.
"With this agreement, Recurrent Energy and Southern Power are partnering to bring more than half a gigawatt of solar power online by the end of 2016," said Shawn Qu, Chairman and CEO of Canadian Solar. "Southern Power's commitment to renewables underscores the important role of solar and is a clear indicator that our large-scale solar facilities are attractive assets."