Canadian Solar Arm Sells 134 MW Solar Plant to Goldman Sachs

This transaction completes Recurrent Energy’s sale of equity stakes in the 973 MW portfolio of California solar projects that came online in 2016.

Canadian Solar one of the world’s largest solar power companies, today announced its wholly owned subsidiary Recurrent Energy has sold its equity stake in the 134 MW Mustang solar project to the Renewable Power Group of Goldman Sachs Asset Management, L.P.

This transaction completes Recurrent Energy’s sale of equity stakes in the 973 MW portfolio of California solar projects that came online in 2016. The company expects to recognise the sales revenue from Mustang in the second quarter of 2019.

Community choice aggregators (CCAs) – Sonoma Clean Power and MCE (formerly Marin Clean Energy) are the purchasers of the electricity from the Mustang project under long-term power purchase agreements. Mustang became the first utility-scale solar project fully contracted with CCAs to obtain non-recourse financing in October 2015. Recurrent Energy continues to lead the renewable energy industry in power contracts signed with CCAs. Wood Mackenzie reported in its U.S. Utility PV Market: Quarterly Update – Q1 2019 that the firm holds 42 percent of all signed electricity contracts with CCAs.

“We are thrilled to partner with Goldman Sachs on the sale of the Mustang solar project, and this transaction again demonstrates Canadian Solar’s ability to attract top tier investors,” said Dr. Shawn Qu, chairman and chief executive of Canadian Solar. “Constructed with a primarily local workforce, the Mustang project was a prime example of how solar project development benefits the surrounding communities.”

Located in California’s Central Valley, Mustang produces enough clean electricity to power approximately 45,000 homes. Canadian Solar will continue to provide asset management services to the project.

In April, Recurrent secured a $50 million LoC facility from multinational financial services firm, Natixis. The $50 million LoC facility is to support the development of the Company’s utility-scale solar projects across the U.S. and Canada. The facility size may be increased with participation from other banking partners that are committed to the North American renewable energy market.