Canadian Solar has agreed to buy a stake of 51% in Photon Energy’s 1.14GWp portfolio of solar power projects to be developed in the Australian state of New South Wales.
The Canadian company will provide development financing to complete the development in exchange of the stake in the portfolio.
Financial terms of the co-development financing deal have not been disclosed.
The portfolio includes five utility-scale solar plants with the biggest of them being a 316MWp solar plant in Gunning, which is fully owned by Photon Energy.
Construction of the Gunning solar plant is likely to start in early 2019. Expected to be built over 590 hectares of land, the solar farm is currently going through the permitting and grid connection process.
The remaining four projects are co-developed by Photon Energy with a local partner, Polpo Investment. These include a 286MWp solar plant in Suntop, a 196MWp solar plant in Maryvale, a 178MWp solar plant in Mumbil and a 165MWp solar plant in Gunnedah.
All the four solar plants along with the Gunning solar project will be co-developed further with Canadian Solar.
Canadian Solar chairman and CEO Shawn Qu said: “Canadian Solar is delighted to partner with Photon Energy and bring 1.14 GWp into the Australian market.
“As a very active developer for solar power plants in Australia, we will continue to strengthen our leading position in the market by partnering with Photon Energy.”
Post-transaction, Photon Energy will retain a stake of 49% in the Gunning solar plant and a stake of 24.99% in each of the four other projects.
Photon Energy CEO Georg Hotar said: “This transaction represents an exciting moment for the Photon Energy Group with our long-term commitment to the Australian market bearing fruit.
“This cooperation marks a tangible achievement of the entire team in Australia who have gained the trust of a leading global player in the solar industry such as Canadian Solar.”
Canadian Solar’s equity capital in the Australian solar portfolio will be subject to certain development milestones and joint management processes among others.
Image: The portfolio includes five utility-scale solar plants. Photo: Courtesy of Neville Micallef/FreeImages.com.