Canadian Solar Sells 56.3 MW Solar Plant in Japan for JPY 22.3 Bn

Canadian Solar has completed the sale of the Yamaguchi Shin Mine, a 56.3 MW operational solar power plant in the Yamaguchi Prefecture in Japan.

Canadian Solar, one of the world’s largest solar power companies, has announced that it has completed the sale of the Yamaguchi Shin Mine, a 56.3 MW operational solar power plant in the Yamaguchi Prefecture in Japan.

Hana Financial Investment, a subsidiary of Hana Financial Group, acquired the solar power plant for an enterprise value of approximately JPY 22.3 billion (around USD 205 million). Canadian Solar expects to recognise the revenue from the transaction in the first quarter of 2020. This sale was originally planned to close in the fourth quarter of 2019 but was delayed due to regulatory and contractual obligations required to be met prior to closing the transaction.

The Yamaguchi Shin Mine reached commercial operation in May 2018 and is powered by Canadian Solar high-efficiency modules. The electricity generated is being purchased by Chugoku Electric Power Company, Inc. at the rate of JPY 36.0 (USD 0.32) per kWh for 20 years.

The Chinese module manufacturer will continue to provide asset management as well as operational and maintenance services for the plant after the transaction. Additionally, a 5-year profit-sharing agreement is in place, enabling the firm to secure additional revenue after the sale should the power plant outperform agreed-upon metrics.

“Canadian Solar is excited to announce the completion of the sale of our Shin Mine project,” said Dr. Shawn Qu, chairman and chief executive officer at Canadian Solar. “This transaction structure ensures that we capture stable, long-term revenue streams for our asset management and operations and maintenance services. We expect to grow this business as we work to enhance and retain greater share of the value creation throughout the life cycle of solar power plants.”

Earlier this month, we had reported that the firm had signed a multi-year module supply agreement with Lightsource BP to deliver 1.2 GW of high efficiency polycrystalline solar modules for projects in the US and Australia.