Canadian Solar has announced that the 70MW Oakey 2 Solar Farm in Queensland, Australia has reached financial close.

The Clean Energy Finance Corporation (CEFC) has committed A$55m ($42.8m) financing for the project. The Oakey 2 solar farm is part of a 117MW solar portfolio, which will be sold to Foresight Solar Fund (FSFL).

Besides, Canadian Solar has also won the engineering, procurement and construction (EPC) contract for the solar farm and another contract to provide operations and maintenance (O&M) services for the initial two years after the completion of the plant.

For the solar farm, which is expected to reach commercial operations by this November, Canadian Solar will supply 205,860 of its KuMax CS3U-340P solar panels.

Once operational, the solar farm will generate about 138,800MWh of clean electricity per year, which will power over 23,000 homes in Queensland.

CEFC has provided non-recourse project finance to Canadian Solar across each of its Oakey 1 Solar Farm, Longreach Solar Farm and Oakey 2 Solar Farm projects.

Longreach Solar Farm and Oakey 1 Solar Farm are in late-stage construction and will be connected to grid in March and August this year, respectively. Each project has 20 year off-take agreements with the Government of Queensland.

The Oakey 1 and Oakey 2 solar farms will be connected to the Queensland power grid through a shared transmission line, which will be funded within the innovative financing facility from CEFC.

Canadian Solar chairman and CEO Shawn Qu said: “We are pleased to partner with FSFL and the CEFC on extending our integrated business across the solar value chain in Australia's clean energy sector.

“With a pipeline exceeding 1,000 MW of early to late-stage developments across four states (Queensland, New South Wales, Victoria and Western Australia), we continue to commit to a sustainable clean energy future for Australia.”