Canadian Solar enters binding contracts for Australian solar farms

solar plant

Canadian Solar has entered into binding contracts to sell interests in three solar farms in Queensland to Foresight Solar Fund Limited (FSFL).

The portfolio consists of the 15MW Longreach Solar Farm, which will use more than 54,000 solar panels to generate 39.1GWh of electricity per year, as well as the Oakey Solar Farm – an 80MW two-stage project being built on a local family farm outside Oakey.

The first stage of the project is a 25MW solar farm that is currently under construction

The FSFL has acquired 49 per cent interests in each of Longreach and Oakey 1, and a 100 per cent interest in Oakey 2.

“We are pleased to have worked with FSFL and their team on this milestone transaction,” Canadian Solar CEO Dr Shawn Qu said.

“Canadian Solar is very well positioned in Australia with an 800MW pipeline of early to late-stage developments and these projects will directly contribute to the Federal Government’s Renewable Energy Target and state government initiatives in generating affordable clean energy.”

Two of the three solar farms (Oakey 1 and Longreach) hold 20-year offtake agreements with the Queensland Government and are under construction with connection to the grid expected in March and September 2018 respectively.

Oakey 2 solar farm 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.

Both Oakey 1 and Longreach have been funded to date by equity from Canadian Solar, grants from the Australian Renewable Energy Agency (ARENA), and senior debt from the Clean Energy Finance Corporation (CEFC) and Bank of Tokyo-Mitsubishi UFJ.

The completion of the acquisitions is subject to certain conditions being met including consents from relevant stakeholders.