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Recurrent Energy agrees to give Southern Power 51% interest in Garland solar project
By Lisa Kerner
Charlotte, N.C., Dec. 21 – Recurrent Energy, a subsidiary of Canadian Solar, Inc., signed an agreement with Southern Power, a subsidiary of Southern Co., giving Southern Power a 51% interest in the Garland solar photovoltaic project currently under construction in California.
Under the terms of the agreement, Southern Power will acquire 51% of the equity in the solar generation project. Canadian Solar will retain 49% ownership and contribute its share of the investment required to complete the construction of the project, according to a news release.
On Friday, Recurrent Energy announced it closed on a combined $480 million construction and term debt facility with a syndicate of five banks for the Garland project. The funding includes project-level construction debt, letter-of-credit facilities and a back-leveraged term facility. NORD/LB is the coordinating lead arranger of the syndicate, which includes CIT, KeyBanc, Rabobank and Santander.
The Garland facility is expected to enter commercial operation in the fourth quarter of 2016. The electricity and associated renewable energy credits generated by the facility will be sold to Southern California Edison under long-term power purchase agreements.
Garland is Recurrent Energy’s third venture with Southern Power, which also holds a controlling interest in the 200 MW AC Tranquillity solar facility in California and the 157 MW AC Roserock solar facility in Texas.
“With this agreement, Recurrent Energy and Southern Power are partnering to bring more than half a gigawatt of solar power online by the end of 2016,” said Canadian Solar chairman and chief executive officer Shawn Qu.
Recurrent Energy is a clean energy company with utility-scale solar plants. It is a subsidiary of Canadian Solar Inc., a solar power company based in Guelph, Ont.
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