Canadian Solar Inc. entered into binding agreements to sell interests in three solar projects in Queensland, Australia, with total capacity of 117 MW to U.K.-headquartered private equity investor Foresight Solar Fund Ltd.
Foresight Solar Fund will acquire a 49% stake in the 17-MW Longreach and 30-MW Oakey 1 solar facilities and a 100% interest in the 70-MW Oakey 2 solar project, according to an Oct. 16 release.
Oakey 1 and Longreach are under construction and are expected to come online in March 2018 and September 2018, respectively, and hold 20-year offtake agreements with the Queensland government. Oakey 2 is expected to connect to the grid in October 2018 and will benefit from the sale of power and large-scale generation certificates under the Renewable Energy Target regulatory framework.
Canadian Solar received $50 million in five-year term, non-recourse project financing for two of its solar power plants in Australia from the Bank of Tokyo-Mitsubishi UFJ Ltd. and Clean Energy Finance Corp.
The deal completion is subject to certain closing conditions being met including consents from relevant stakeholders.