Southern Company subsidiary Southern Power has agreed to acquire majority stake in 200MW Tranquillity Solar Power Project in California, US from Canadian Solar's subsidiary Recurrent Energy.
Developed by Recurrent Energy, the solar project is currently under construction in California.
During the construction phase, the project is expected to create nearly 500 jobs.
As per the agreed terms, Southern Power will acquire close to 51% of the solar generation project, while the remainder 49% will be owned by Canadian Solar.
Canadian Solar will contribute its share of the investment required to complete the construction of the project, which has been financially backed through a construction and back-leveraged loan facility from a syndicate of six banks.
Signal Energy Constructors will provide engineering, procurement, and construction services to the project.
Canadian Solar chairman and CEO Dr. Shawn Qu said: "The Tranquillity project is an attractive opportunity for investors, providing long term stable cash flows.
"This transaction is another example of solar power’s move into the mainstream energy mix, and it shows our broader team’s ability to attract top notch investors to finance our high-quality projects."
The Tranquillity project will use over 800,000 polycrystalline photovoltaic solar modules, mounted on tracking tables.
Expected to become operational in the fourth quarter of 2016, the facility will generate clean energy that will be enough to meet power needs of nearly 55,000 homes.
Southern California Edison will purchase the electricity and associated renewable energy credits generated by the facility, under a 15-year power purchase agreement.
Southern Company chairman, president and CEO Thomas A. Fanning said: "Southern Company’s strategic solar expansion is helping diversify our energy mix while strengthening our industry leadership in solar.
"We will continue to develop the right projects and develop innovative solutions as we shape America’s energy future."
Image: The Tranquillity project employs over 800,000 polycrystalline photovoltaic solar modules. Photo: courtesy of graur codrin / FreeDigitalPhotos.net.