TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced it has agreed to purchase nine Ontario solar projects from Canadian Solar Solutions Inc., with a combined capacity of 86 megawatts (MW), for approximately $470 million. All nine projects have 20-year power purchase agreements with the Ontario Power Authority.
"The addition of these solar projects allows us to expand and add to our diverse power generating portfolio where a third of the power we own, or have interests in, comes from alternative or renewable energy sources," said Russ Girling, TransCanada's president and chief executive officer. "Upon close of this acquisition, this low-risk investment is expected to be immediately accretive to earnings and cash flow."
Under the terms of the agreement, each of the nine solar projects will be developed and constructed by Canadian Solar Solutions Inc. utilizing their photovoltaic panels. TransCanada will purchase each project after it begins commercial operation and subject to certain milestones being met. Subject to regulatory approvals, TransCanada anticipates the projects will come into service between late 2012 and mid-2013. These projects will complement TransCanada's existing operations in Ontario where it has become the largest independent power producer in the province.
TransCanada currently operates the largest wind farm in Canada, and the largest wind farm in New England. Its hydro electric facilities span three states in New Hampshire, Massachusetts and Vermont. TransCanada is also a partner in Canada's first private nuclear generator which currently produces 4,700 MW of emission-free electricity in Ontario.
Canadian Solar Inc. (NASDAQ: CSIQ) is one of the world's largest solar companies. As a leading vertically integrated provider of ingots, wafers, solar cells, solar modules and other solar applications, Canadian Solar designs, manufactures and delivers solar products and solar system solutions for on-grid and off-grid use to customers worldwide. With operations in North America, Europe, Australia and Asia, Canadian Solar provides premium quality, cost-effective and environmentally friendly solar solutions to support global, sustainable development. For more information, visit www.canadiansolar.com.
With more than 60 years experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities. TransCanada's network of wholly owned natural gas pipelines extends more than 57,000 kilometres (35,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,800 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest oil delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP.