Recurrent Energy has agreed to sell a majority stake in a 100MW portfolio of Ontario, Canada solar photovoltaic (PV) projects to Mitsubishi Corporation and Osaka Gas.
As per the deal, the 100MW of solar power will be made available to the Ontario Power Authority (OPA) which has inked 20-year power purchase agreements for each of the projects in the portfolio.
The acquisition is scheduled to occur once the facilities achieve commercial operation.
The acquisition will form part of Recurrent Energy’s first sale from its 200MW portfolio of projects with Mitsubishi and Osaka Gas being equal investors in the acquired assets, while Recurrent Energy will retain a minority stake.
Recurrent Energy CEO Arno Harris said, "Our partnership with Mitsubishi Corporation and Osaka Gas shows just how far solar has come ? it’s both an attractive investment and an important part of our energy mix in North America."
Mitsubishi Corporation New Energy & Power Generation Division general manager Masao Ikeya said with more than 20 years of IPP business overseas, the company believes this project to be attractive, with reliable partners, Recurrent Energy and Osaka Gas.
"Mitsubishi Corporation is aiming to expand our power generation capacity from the current operational level of approximately 3.7 GW to 6 GW, with 1 GW from renewable energy and 5 GW from thermal power by 2015," he added.
The portfolio that Mitsubishi Corporation and Osaka Gas intend to acquire is expected to generate more than 110,000,000 kWh during the first year of operation.
Initial phase of project construction for the overall 200MW portfolio of OPA projects began in Spring 2012 and all of the acquired projects are expected to be operational in 2013.
